ServiceNow Inc (NOW)vsPegasystems Inc (PEGA)
NOW
ServiceNow Inc
$132.53
+1.04%
TECHNOLOGY · Cap: $137.02B
PEGA
Pegasystems Inc
$36.24
+1.46%
TECHNOLOGY · Cap: $5.89B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 748% more annual revenue ($14.73B vs $1.74B). PEGA leads profitability with a 18.7% profit margin vs 11.3%. NOW appears more attractively valued with a PEG of 0.95. NOW earns a higher WallStSmart Score of 49/100 (D+).
NOW
Hold49
out of 100
Grade: D+
PEGA
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.9%
Fair Value
$626.98
Current Price
$132.53
$494.45 discount
Margin of Safety
+61.1%
Fair Value
$97.56
Current Price
$36.24
$61.32 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 24.0% year-over-year
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Areas to Watch
Trading at 10.9x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Trading at 10.6x book value
Operating margin of 4.6%
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.
Bull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity. Profitability is solid with margins at 18.7% and operating margin at 4.6%.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 81.8x leaves little room for execution misses.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
NOW profiles as a growth stock while PEGA is a mature play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.97 — expect wider price swings.
NOW is growing revenue faster at 24.0% — sustainability is the question.
NOW generates stronger free cash flow (473M), providing more financial flexibility.
Bottom Line
NOW scores higher overall (49/100 vs 48/100) and 24.0% revenue growth. PEGA offers better value entry with a 61.1% margin of safety. Both earn "Hold" and "Hold" 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.
Pegasystems Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, Massachusetts.
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