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

Updated

Here’s a clear look at APP and NOW, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

NOW stands out with 210.06 billion USD in market value—about 1.73× APP’s market cap of 121.26 billion USD.

APP’s beta of 2.39 points to much larger expected swings compared to NOW’s calmer 0.97, suggesting both higher upside and downside potential.

SymbolAPPNOW
Company NameAppLovin CorporationServiceNow, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSoftware - Application
CEOMr. Adam Arash ForoughiMr. William R. McDermott
Price358.35 USD1,014.76 USD
Market Cap121.26 billion USD210.06 billion USD
Beta2.390.97
ExchangeNASDAQNYSE
IPO DateApril 15, 2021June 29, 2012
ADRNoNo

Performance Comparison

This chart compares the performance of APP and NOW over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of APP and NOW based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • NOW features a high P/E of 136.46, indicating strong growth expectations, compared to APP at 63.43, which trades at a more standard valuation based on its current earnings.
SymbolAPPNOW
Price-to-Earnings Ratio (P/E, TTM)63.43136.46
Forward PEG Ratio (TTM)2.437.29
Price-to-Sales Ratio (P/S, TTM)23.6118.32
Price-to-Book Ratio (P/B, TTM)211.6420.70
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8757.20
EV-to-EBITDA (TTM)47.3089.51
EV-to-Sales (TTM)24.2318.23
EV-to-Free Cash Flow (TTM)49.1256.94

Dividend Comparison

Neither APP nor NOW currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

SymbolAPPNOW
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and NOW, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while NOW at 0.24 keeps leverage at a more moderate level.
SymbolAPPNOW
Current Ratio (TTM)1.681.12
Quick Ratio (TTM)1.681.12
Debt-to-Equity Ratio (TTM)6.450.24
Debt-to-Assets Ratio (TTM)0.650.11
Interest Coverage Ratio (TTM)7.4164.48