ServiceNow Inc (NOW)vsPaylocity Holdng (PCTY)
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
PCTY
Paylocity Holdng
$109.60
+1.19%
TECHNOLOGY · Cap: $5.89B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 691% more annual revenue ($13.28B vs $1.68B). PCTY leads profitability with a 14.2% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. PCTY earns a higher WallStSmart Score of 66/100 (B-).
NOW
Buy56
out of 100
Grade: C
PCTY
Strong Buy66
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
+42.5%
Fair Value
$187.20
Current Price
$109.60
$77.60 discount
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
Earnings expanding 133.3% YoY
Every $100 of equity generates 21 in profit
Revenue surging 28.2% year-over-year
Areas to Watch
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Moderate valuation
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 : PCTY
The strongest argument for PCTY centers on EPS Growth, Return on Equity, Revenue Growth. Revenue growth of 28.2% demonstrates continued momentum. PEG of 1.27 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 : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
NOW carries more volatility with a beta of 1.02 — expect wider price swings.
PCTY is growing revenue faster at 28.2% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PCTY scores higher overall (66/100 vs 56/100) and 28.2% 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.
Paylocity Holdng
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
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