ServiceNow Inc (NOW)vsPegasystems Inc (PEGA)
NOW
ServiceNow Inc
$112.45
+1.96%
TECHNOLOGY · Cap: $131.65B
PEGA
Pegasystems Inc
$34.71
-2.06%
TECHNOLOGY · Cap: $5.47B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 721% more annual revenue ($13.96B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 1.32. NOW earns a higher WallStSmart Score of 54/100 (C-).
NOW
Buy54
out of 100
Grade: C-
PEGA
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$613.35
Current Price
$112.45
$500.90 discount
Margin of Safety
+60.6%
Fair Value
$96.36
Current Price
$34.71
$61.65 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Conservative balance sheet, low leverage
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Trading at 9.9x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Trading at 8.3x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.32 suggests the stock is reasonably priced for its growth.
Bull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 76.0x leaves little room for execution misses.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
NOW profiles as a growth stock while PEGA is a declining play — different risk/reward profiles.
PEGA carries more volatility with a beta of 0.84 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
NOW generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
NOW scores higher overall (54/100 vs 45/100) and 22.1% revenue growth. PEGA offers better value entry with a 60.6% margin of safety. Both earn "Buy" 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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