ServiceNow, Inc. vs SAP SE, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
ServiceNow is a workflow platform still in land-grab mode, spending its 75.1% gross margin down to a 13.3% operating line to keep growing; SAP is the incumbent estate those workflows often wrap around, converting a similar 72.9% gross margin into 26.1% operating profit because its land was grabbed decades ago. The market pays 58.6 times for the sprint and 23.3 for the estate. Cash tells the closer story: free-cash yields of 4.5% and 5.5%, nearly alike, because ServiceNow's subscription billing throws off cash its income statement defers. Both are debt-free. The choice is expansion economics against harvest economics, priced 35 turns apart with the cash flows nearly touching.
Comparison updated 2026-07-10.
| Metric | NOW | SAP |
|---|---|---|
| Price | $98.42 | $155.23 |
| Market cap | $102.3B | $181.0B |
| Sector | Software | Software |
| Stage | Growth | Mature |
| P/E | 58.6 | 23.3 |
| P/B | 8.73 | 3.69 |
| P/S | 7.33 | 4.52 |
| EV/EBITDA | 36.7 | 16.5 |
| Revenue growth | +21.7% | +8.1% |
| Gross margin | 75.1% | 72.9% |
| Operating margin | 13.3% | 26.1% |
| Net margin | 12.6% | 19.9% |
| Return on equity | 15.0% | 16.3% |
| Return on assets | 7.2% | 10.4% |
| Return on invested capital | 11.2% | 15.2% |
| FCF yield | 4.5% | 5.5% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 0.84 | 1.16 |
| Altman Z (solvency) | 5.75 | 5.92 |
| Piotroski F (quality) | 7 / 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.