ServiceNow Inc (NOW)vsOpen Text Corp (OTEX)
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
OTEX
Open Text Corp
$22.08
+0.45%
TECHNOLOGY · Cap: $5.62B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 156% more annual revenue ($13.28B vs $5.18B). NOW leads profitability with a 13.2% profit margin vs 8.4%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 58/100 (C).
NOW
Buy56
out of 100
Grade: C
OTEX
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-404.2%
Fair Value
$20.44
Current Price
$103.06
$82.62 premium
Margin of Safety
-108.6%
Fair Value
$11.63
Current Price
$22.08
$10.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B in free cash flow
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 23.5%
Areas to Watch
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Elevated debt levels
Revenue declined 0.6%
Earnings declined 23.9%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : OTEX
The strongest argument for OTEX centers on Price/Book, P/E Ratio, Operating Margin. 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 62.7x leaves little room for execution misses.
Bear Case : OTEX
The primary concerns for OTEX are Debt/Equity, Revenue Growth, EPS Growth. Debt-to-equity of 1.63 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 1.08 — expect wider price swings.
NOW is growing revenue faster at 20.7% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
OTEX scores higher overall (58/100 vs 56/100). Both earn "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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