ServiceNow Inc (NOW)vsTeradyne Inc (TER)
NOW
ServiceNow Inc
$91.18
-2.58%
TECHNOLOGY · Cap: $96.52B
TER
Teradyne Inc
$359.77
+1.60%
TECHNOLOGY · Cap: $55.43B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 269% more annual revenue ($13.96B vs $3.79B). TER leads profitability with a 22.6% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.89. TER earns a higher WallStSmart Score of 75/100 (B+).
NOW
Buy59
out of 100
Grade: C
TER
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$630.85
Current Price
$91.18
$539.67 discount
Intrinsic value data unavailable for TER.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Strong operational efficiency at 37.6%
Revenue surging 87.0% year-over-year
Earnings expanding 314.8% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Trading at 8.0x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 20.1x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.7x leaves little room for execution misses.
Key Dynamics to Monitor
TER carries more volatility with a beta of 1.79 — expect wider price swings.
TER is growing revenue faster at 87.0% — 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
TER scores higher overall (75/100 vs 59/100), backed by strong 22.6% margins and 87.0% revenue growth. NOW offers better value entry with a 85.2% margin of safety. Both earn "Strong 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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