WallStSmart

ServiceNow Inc (NOW)vsSPS Commerce Inc (SPSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ServiceNow Inc generates 1707% more annual revenue ($13.96B vs $772.49M). NOW leads profitability with a 12.6% profit margin vs 10.1%. NOW appears more attractively valued with a PEG of 0.89. NOW earns a higher WallStSmart Score of 59/100 (C).

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.65

SPSC

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 6.5Value: 5.3Quality: 8.0
Piotroski: 3/9Altman Z: 4.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOWUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$602.92

Current Price

$111.23

$491.69 discount

UndervaluedFair: $602.92Overvalued
SPSCUndervalued (+71.5%)

Margin of Safety

+71.5%

Fair Value

$240.12

Current Price

$73.39

$166.73 discount

UndervaluedFair: $240.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$98.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

SPSC3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
9.8x4/10

Trading at 9.8x 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

SPSC4 concerns · Avg: 2.8/10
P/E RatioValuation
35.3x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.552/10

Expensive relative to growth rate

EPS GrowthGrowth
-63.9%2/10

Earnings declined 63.9%

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 0.89 suggests the stock is reasonably priced for its growth.

Bull Case : SPSC

The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 60.4x leaves little room for execution misses.

Bear Case : SPSC

The primary concerns for SPSC are P/E Ratio, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

NOW profiles as a growth stock while SPSC is a value play — different risk/reward profiles.

NOW carries more volatility with a beta of 0.96 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

NOW generates stronger free cash flow (473M), providing more financial flexibility.

Bottom Line

NOW scores higher overall (59/100 vs 49/100) and 22.1% revenue growth. SPSC offers better value entry with a 71.5% 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.

SPS Commerce Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.

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