MICROSOFT CORPORATION vs ServiceNow, Inc., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where MSFT and NOW diverge most: on operating margin, MSFT reads 46.3% and NOW reads 13.3%; on net margin, MSFT reads 36.0% and NOW reads 12.6%. The rest of the comparable metrics sit closer together. What MSFT's price implies is a bet that sits within the historical range (whole-company basis). What NOW's price implies is a demanding bet versus history and the cohort (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | MSFT | NOW |
|---|---|---|
| Price | $385.09 | $107.68 |
| Market cap | $2.87T | $112.0B |
| Sector | Software | Software |
| Stage | Mature | Growth |
| Implied growth (priced in) | +15.0% | — |
| P/E | 22.9 | 64.1 |
| P/B | 6.92 | 9.55 |
| P/S | 9.01 | 8.02 |
| EV/EBITDA | 15.8 | 40.8 |
| Revenue growth | +17.9% | +21.7% |
| Gross margin | 67.6% | 75.1% |
| Operating margin | 46.3% | 13.3% |
| Net margin | 36.0% | 12.6% |
| Return on equity | 27.6% | 15.0% |
| Return on assets | 16.5% | 7.2% |
| Return on invested capital | 26.0% | 9.9% |
| FCF yield | 2.5% | 4.1% |
| Dividend yield | 0.9% | — |
| Debt / equity | 0.12 | 0.13 |
| Current ratio | 1.28 | 0.84 |
| Altman Z (solvency) | 7.32 | 6.20 |
| Piotroski F (quality) | 5 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.