WallStSmart

ServiceNow Inc (NOW)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ServiceNow Inc generates 21% more annual revenue ($13.96B vs $11.56B). NOW leads profitability with a 12.6% profit margin vs 10.6%. NOW appears more attractively valued with a PEG of 0.86. NOW earns a higher WallStSmart Score of 59/100 (C).

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOWUndervalued (+85.6%)

Margin of Safety

+85.6%

Fair Value

$633.65

Current Price

$91.16

$542.49 discount

UndervaluedFair: $633.65Overvalued
SHOPUndervalued (+20.9%)

Margin of Safety

+20.9%

Fair Value

$147.83

Current Price

$127.67

$20.16 discount

UndervaluedFair: $147.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOW4 strengths · Avg: 8.3/10
Market CapQuality
$91.07B9/10

Large-cap with strong market position

PEG RatioValuation
0.868/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Market CapQuality
$157.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Price/BookValuation
12.4x4/10

Trading at 12.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
128.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 52.6x leaves little room for execution misses.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 128.9x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.82 — expect wider price swings.

SHOP is growing revenue faster at 30.6% — sustainability is the question.

NOW generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NOW scores higher overall (59/100 vs 50/100) and 22.1% revenue growth. SHOP offers better value entry with a 20.9% margin of safety. 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.

Shopify Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

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