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ANSS vs. NOW: A Head-to-Head Stock Comparison

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Here’s a clear look at ANSS and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

NOW’s market capitalization of 216.41 billion USD is significantly greater than ANSS’s 32.31 billion USD, highlighting its more substantial market valuation.

With betas of 1.19 for ANSS and 0.96 for NOW, both stocks show similar sensitivity to overall market movements.

SymbolANSSNOW
Company NameANSYS, Inc.ServiceNow, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSoftware - Application
CEOAjei S. GopalWilliam R. McDermott
Price367.48 USD1,044.69 USD
Market Cap32.31 billion USD216.41 billion USD
Beta1.190.96
ExchangeNASDAQNYSE
IPO DateJune 20, 1996June 29, 2012
ADRNoNo

Historical Performance

This chart compares the performance of ANSS and NOW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ANSS vs. NOW: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ANSS

10.01%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

ANSS’s Return on Equity of 10.01% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.

NOW

16.32%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

NOW’s Return on Equity of 16.32% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.

ANSS vs. NOW: A comparison of their ROE against the Software - Application industry benchmark.

Return on Invested Capital

ANSS

8.28%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

ANSS’s Return on Invested Capital of 8.28% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.

NOW

9.53%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

NOW’s Return on Invested Capital of 9.53% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.

ANSS vs. NOW: A comparison of their ROIC against the Software - Application industry benchmark.

Net Profit Margin

ANSS

22.95%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 22.95% places ANSS in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

NOW

13.41%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

NOW’s Net Profit Margin of 13.41% is aligned with the median group of its peers in the Software - Application industry. This indicates its ability to convert revenue into profit is typical for the sector.

ANSS vs. NOW: A comparison of their Net Profit Margin against the Software - Application industry benchmark.

Operating Profit Margin

ANSS

28.87%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 28.87% places ANSS in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

NOW

12.93%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

NOW’s Operating Profit Margin of 12.93% is around the midpoint for the Software - Application industry, indicating that its efficiency in managing core business operations is typical for the sector.

ANSS vs. NOW: A comparison of their Operating Margin against the Software - Application industry benchmark.

Profitability at a Glance

SymbolANSSNOW
Return on Equity (TTM)10.01%16.32%
Return on Assets (TTM)7.43%7.33%
Return on Invested Capital (TTM)8.28%9.53%
Net Profit Margin (TTM)22.95%13.41%
Operating Profit Margin (TTM)28.87%12.93%
Gross Profit Margin (TTM)88.78%78.92%

Financial Strength

Current Ratio

ANSS

3.66

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

ANSS’s Current Ratio of 3.66 is in the upper quartile for the Software - Application industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

NOW

1.12

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

NOW’s Current Ratio of 1.12 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.

ANSS vs. NOW: A comparison of their Current Ratio against the Software - Application industry benchmark.

Debt-to-Equity Ratio

ANSS

0.14

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

ANSS’s Debt-to-Equity Ratio of 0.14 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NOW

0.24

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

NOW’s Debt-to-Equity Ratio of 0.24 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ANSS vs. NOW: A comparison of their D/E Ratio against the Software - Application industry benchmark.

Interest Coverage Ratio

ANSS

16.34

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

ANSS’s Interest Coverage Ratio of 16.34 is in the upper quartile for the Software - Application industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

NOW

64.48

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

With an Interest Coverage Ratio of 64.48, NOW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.

ANSS vs. NOW: A comparison of their Interest Coverage against the Software - Application industry benchmark.

Financial Strength at a Glance

SymbolANSSNOW
Current Ratio (TTM)3.661.12
Quick Ratio (TTM)3.661.12
Debt-to-Equity Ratio (TTM)0.140.24
Debt-to-Asset Ratio (TTM)0.100.11
Net Debt-to-EBITDA Ratio (TTM)-1.00-0.42
Interest Coverage Ratio (TTM)16.3464.48

Growth

The following charts compare key year-over-year (YoY) growth metrics for ANSS and NOW. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ANSS vs. NOW: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ANSS vs. NOW: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ANSS vs. NOW: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ANSS

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ANSS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

NOW

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ANSS vs. NOW: A comparison of their Dividend Yield against the Software - Application industry benchmark.

Dividend Payout Ratio

ANSS

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ANSS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

NOW

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ANSS vs. NOW: A comparison of their Payout Ratio against the Software - Application industry benchmark.

Dividend at a Glance

SymbolANSSNOW
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

ANSS

54.22

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

ANSS’s P/E Ratio of 54.22 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NOW

140.48

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

A P/E Ratio of 140.48 places NOW in the upper quartile for the Software - Application industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ANSS vs. NOW: A comparison of their P/E Ratio against the Software - Application industry benchmark.

Forward P/E to Growth Ratio

ANSS

6.92

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

A Forward PEG Ratio of 6.92 places ANSS in the upper quartile for the Software - Application industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

NOW

7.51

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

A Forward PEG Ratio of 7.51 places NOW in the upper quartile for the Software - Application industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

ANSS vs. NOW: A comparison of their Forward PEG Ratio against the Software - Application industry benchmark.

Price-to-Sales Ratio

ANSS

12.51

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

ANSS’s P/S Ratio of 12.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

NOW

18.87

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

NOW’s P/S Ratio of 18.87 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ANSS vs. NOW: A comparison of their P/S Ratio against the Software - Application industry benchmark.

Price-to-Book Ratio

ANSS

5.20

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

NOW

21.31

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

ANSS vs. NOW: A comparison of their P/B Ratio against the Software - Application industry benchmark.

Valuation at a Glance

SymbolANSSNOW
Price-to-Earnings Ratio (P/E, TTM)54.22140.48
Forward PEG Ratio (TTM)6.927.51
Price-to-Sales Ratio (P/S, TTM)12.5118.87
Price-to-Book Ratio (P/B, TTM)5.2021.31
Price-to-Free Cash Flow Ratio (P/FCF, TTM)37.2758.94
EV-to-EBITDA (TTM)33.8992.23
EV-to-Sales (TTM)12.1518.78