ServiceNow Inc (NOW)vsSonos Inc (SONO)
NOW
ServiceNow Inc
$124.88
+6.42%
TECHNOLOGY · Cap: $122.14B
SONO
Sonos Inc
$15.64
+1.23%
TECHNOLOGY · Cap: $1.73B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 888% more annual revenue ($14.73B vs $1.49B). NOW leads profitability with a 11.3% profit margin vs 3.8%. SONO trades at a lower P/E of 32.6x. SONO earns a higher WallStSmart Score of 51/100 (C-).
NOW
Hold49
out of 100
Grade: D+
SONO
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.5%
Fair Value
$634.69
Current Price
$124.88
$509.81 discount
Margin of Safety
-31.5%
Fair Value
$12.55
Current Price
$15.64
$3.09 premium
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
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 10.3x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
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 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 72.0x leaves little room for execution misses.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
NOW profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.96 — 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
SONO scores higher overall (51/100 vs 49/100). NOW offers better value entry with a 81.5% 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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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