ServiceNow Inc (NOW)vsOpen Text Corp (OTEX)
NOW
ServiceNow Inc
$112.45
+1.96%
TECHNOLOGY · Cap: $131.65B
OTEX
Open Text Corp
$23.12
-2.24%
TECHNOLOGY · Cap: $5.39B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 168% more annual revenue ($13.96B vs $5.21B). NOW leads profitability with a 12.6% profit margin vs 9.9%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 70/100 (B-).
NOW
Buy54
out of 100
Grade: C-
OTEX
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$613.35
Current Price
$112.45
$500.90 discount
Margin of Safety
+81.8%
Fair Value
$133.20
Current Price
$23.12
$110.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Conservative balance sheet, low leverage
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 99.0% YoY
Strong operational efficiency at 21.4%
Areas to Watch
Trading at 9.9x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
2.2% revenue growth
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.32 suggests the stock is reasonably priced for its growth.
Bull Case : OTEX
The strongest argument for OTEX centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 76.0x leaves little room for execution misses.
Bear Case : OTEX
The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.62 is elevated, increasing financial risk.
Key Dynamics to Monitor
NOW profiles as a growth stock while OTEX is a value play — different risk/reward profiles.
OTEX carries more volatility with a beta of 1.05 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
NOW generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
OTEX scores higher overall (70/100 vs 54/100). NOW offers better value entry with a 82.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
Open Text Corp
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Open Text Corporation offers a suite of software products and services. The company is headquartered in Waterloo, Canada.
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