ServiceNow Inc (NOW)vsPegasystems Inc (PEGA)
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
PEGA
Pegasystems Inc
$41.49
-1.10%
TECHNOLOGY · Cap: $7.12B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 661% more annual revenue ($13.28B vs $1.75B). PEGA leads profitability with a 22.5% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. PEGA earns a higher WallStSmart Score of 61/100 (C+).
NOW
Buy56
out of 100
Grade: C
PEGA
Buy61
out of 100
Grade: C+
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
+62.0%
Fair Value
$99.68
Current Price
$41.49
$58.19 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
Every $100 of equity generates 57 in profit
Earnings expanding 104.3% YoY
Conservative balance sheet, low leverage
Keeps 23 of every $100 in revenue as profit
Strong operational efficiency at 24.9%
Areas to Watch
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Trading at 9.0x book value
2.7% revenue growth
Expensive relative to growth rate
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 : PEGA
The strongest argument for PEGA centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.5% and operating margin at 24.9%.
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 : PEGA
The primary concerns for PEGA are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
NOW profiles as a growth stock while PEGA is a value play — different risk/reward profiles.
PEGA carries more volatility with a beta of 1.12 — 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
PEGA scores higher overall (61/100 vs 56/100), backed by strong 22.5% margins. 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.
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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