ServiceNow Inc (NOW)vsPalo Alto Networks Inc (PANW)
NOW
ServiceNow Inc
$102.36
-0.38%
TECHNOLOGY · Cap: $109.11B
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 34% more annual revenue ($15.43B vs $11.48B). NOW leads profitability with a 9.4% profit margin vs 2.7%. NOW appears more attractively valued with a PEG of 0.76. NOW earns a higher WallStSmart Score of 55/100 (C-).
NOW
Buy55
out of 100
Grade: C-
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.7%
Fair Value
$643.99
Current Price
$102.36
$541.63 discount
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$314.67
$184.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 20.5% year-over-year
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Trading at 8.1x book value
Distress zone — elevated risk
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 9.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 20.5% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Piotroski F-Score. A P/E of 75.6x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
NOW profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.99 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
NOW scores higher overall (55/100 vs 51/100) and 20.5% revenue growth. PANW offers better value entry with a 26.6% margin of safety. 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.
Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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