ServiceNow Inc (NOW)vsPaycom Software, Inc. (PAYC)
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
PAYC
Paycom Software, Inc.
$119.82
+0.72%
TECHNOLOGY · Cap: $6.53B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 547% more annual revenue ($13.28B vs $2.05B). PAYC leads profitability with a 22.1% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. PAYC earns a higher WallStSmart Score of 69/100 (B-).
NOW
Buy56
out of 100
Grade: C
PAYC
Strong Buy69
out of 100
Grade: B-
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
-44.6%
Fair Value
$82.09
Current Price
$119.82
$37.73 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
Every $100 of equity generates 27 in profit
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 28.9%
Areas to Watch
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
2.1% earnings growth
Weak financial health signals
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 : PAYC
The strongest argument for PAYC centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 22.1% and operating margin at 28.9%. Revenue growth of 10.2% demonstrates continued momentum.
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 : PAYC
The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
NOW profiles as a growth stock while PAYC is a mature play — different risk/reward profiles.
NOW carries more volatility with a beta of 1.02 — 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
PAYC scores higher overall (69/100 vs 56/100), backed by strong 22.1% margins and 10.2% revenue growth. 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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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