ServiceNow Inc (NOW)vsZoom Video Communications Inc (ZM)
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
ZM
Zoom Video Communications Inc
$78.11
+2.80%
TECHNOLOGY · Cap: $22.50B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 173% more annual revenue ($13.28B vs $4.87B). ZM leads profitability with a 39.0% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. ZM earns a higher WallStSmart Score of 70/100 (B-).
NOW
Buy56
out of 100
Grade: C
ZM
Strong Buy70
out of 100
Grade: B-
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
+68.1%
Fair Value
$289.22
Current Price
$78.11
$211.11 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
Keeps 39 of every $100 in revenue as profit
Earnings expanding 91.5% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
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 : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.
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 : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
NOW profiles as a growth stock while ZM is a mature play — different risk/reward profiles.
NOW carries more volatility with a beta of 1.02 — 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
ZM scores higher overall (70/100 vs 56/100), backed by strong 39.0% margins. 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.
Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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