CLS vs. NOW: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at CLS and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NOW’s market capitalization of 201.21 billion USD is significantly greater than CLS’s 15.49 billion USD, highlighting its more substantial market valuation.
CLS’s beta of 1.64 points to significantly higher volatility compared to NOW (beta: 0.96), suggesting CLS has greater potential for both gains and losses relative to market movements.
| Symbol | CLS | NOW |
|---|---|---|
| Company Name | Celestica Inc. | ServiceNow, Inc. |
| Country | CA | US |
| Sector | Technology | Technology |
| Industry | Hardware, Equipment & Parts | Software - Application |
| CEO | Mr. Robert Andrew Mionis | Mr. William R. McDermott |
| Price | 134.74 USD | 971.33 USD |
| Market Cap | 15.49 billion USD | 201.21 billion USD |
| Beta | 1.64 | 0.96 |
| Exchange | NYSE | NYSE |
| IPO Date | June 30, 1998 | June 29, 2012 |
| ADR | No | No |
Historical Performance
This chart compares the performance of CLS and NOW over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
CLS
23.32%
Hardware, Equipment & Parts Industry
- Max
- 38.64%
- Q3
- 10.85%
- Median
- 4.18%
- Q1
- -28.42%
- Min
- -80.25%
CLS’s Return on Equity of 23.32% is in the upper quartile for the Hardware, Equipment & Parts industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
NOW
16.32%
Software - Application Industry
- Max
- 59.01%
- Q3
- 14.03%
- Median
- -0.49%
- Q1
- -21.83%
- Min
- -68.62%
NOW’s Return on Equity of 16.32% is in the upper quartile for the Software - Application industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
CLS
16.79%
Hardware, Equipment & Parts Industry
- Max
- 25.09%
- Q3
- 7.64%
- Median
- 3.93%
- Q1
- -15.38%
- Min
- -43.63%
CLS’s Return on Invested Capital of 16.79% is in the upper quartile for the Hardware, Equipment & Parts industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
NOW
9.53%
Software - Application Industry
- Max
- 35.07%
- Q3
- 7.93%
- Median
- -1.48%
- Q1
- -14.32%
- Min
- -44.79%
NOW’s Return on Invested Capital of 9.53% is in the upper quartile for the Software - Application industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
CLS
4.09%
Hardware, Equipment & Parts Industry
- Max
- 42.40%
- Q3
- 8.67%
- Median
- 2.09%
- Q1
- -30.99%
- Min
- -80.83%
CLS’s Net Profit Margin of 4.09% is within the central 50% of the Hardware, Equipment & Parts industry, indicating its ability to convert sales into profit is typical for the sector.
NOW
13.41%
Software - Application Industry
- Max
- 48.14%
- Q3
- 9.64%
- Median
- -2.64%
- Q1
- -23.52%
- Min
- -72.77%
NOW’s Net Profit Margin of 13.41% is in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
CLS
6.01%
Hardware, Equipment & Parts Industry
- Max
- 51.32%
- Q3
- 12.50%
- Median
- 5.48%
- Q1
- -27.94%
- Min
- -86.75%
CLS’s Operating Profit Margin of 6.01% hovers around the midpoint for the Hardware, Equipment & Parts industry, indicating that its efficiency in managing core business operations is characteristic of the sector.
NOW
12.93%
Software - Application Industry
- Max
- 51.67%
- Q3
- 8.21%
- Median
- -2.71%
- Q1
- -21.29%
- Min
- -60.34%
NOW’s Operating Profit Margin of 12.93% is 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.
Profitability at a Glance
| Symbol | CLS | NOW |
|---|---|---|
| Return on Equity (TTM) | 23.32% | 16.32% |
| Return on Assets (TTM) | 7.07% | 7.33% |
| Return on Invested Capital (TTM) | 16.79% | 9.53% |
| Net Profit Margin (TTM) | 4.09% | 13.41% |
| Operating Profit Margin (TTM) | 6.01% | 12.93% |
| Gross Profit Margin (TTM) | 10.59% | 78.92% |
Financial Strength
Current Ratio
CLS
1.43
Hardware, Equipment & Parts Industry
- Max
- 4.71
- Q3
- 3.50
- Median
- 2.47
- Q1
- 1.67
- Min
- 0.51
CLS’s Current Ratio of 1.43 falls into the lower quartile for the Hardware, Equipment & Parts industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
NOW
1.12
Software - Application Industry
- Max
- 5.09
- Q3
- 2.79
- Median
- 1.66
- Q1
- 1.04
- Min
- 0.00
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.
Debt-to-Equity Ratio
CLS
0.60
Hardware, Equipment & Parts Industry
- Max
- 1.36
- Q3
- 0.70
- Median
- 0.34
- Q1
- 0.11
- Min
- 0.00
CLS’s Debt-to-Equity Ratio of 0.60 is typical for the Hardware, Equipment & Parts 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
- 1.86
- Q3
- 0.79
- Median
- 0.19
- 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.
Interest Coverage Ratio
CLS
12.39
Hardware, Equipment & Parts Industry
- Max
- 19.79
- Q3
- 11.91
- Median
- 4.87
- Q1
- 1.73
- Min
- -13.16
CLS’s Interest Coverage Ratio of 12.39 is in the upper quartile for the Hardware, Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments out of operating profits.
NOW
64.48
Software - Application Industry
- Max
- 31.61
- Q3
- 3.42
- Median
- -1.98
- Q1
- -17.62
- Min
- -40.07
NOW’s Interest Coverage Ratio of 64.48 is exceptionally high, placing it well above the typical range for the Software - Application industry. This indicates a superior capacity to service its debt, stemming from either robust earnings or a very conservative debt load.
Financial Strength at a Glance
| Symbol | CLS | NOW |
|---|---|---|
| Current Ratio (TTM) | 1.43 | 1.12 |
| Quick Ratio (TTM) | 0.85 | 1.12 |
| Debt-to-Equity Ratio (TTM) | 0.60 | 0.24 |
| Debt-to-Asset Ratio (TTM) | 0.16 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.88 | -0.42 |
| Interest Coverage Ratio (TTM) | 12.39 | 64.48 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for CLS and NOW. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
CLS
0.00%
Hardware, Equipment & Parts Industry
- Max
- 0.96%
- Q3
- 0.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CLS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
NOW
0.00%
Software - Application Industry
- Max
- 3.71%
- 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 all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
CLS
0.00%
Hardware, Equipment & Parts Industry
- Max
- 13.83%
- Q3
- 8.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CLS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This strategy is common for growth-oriented companies that reinvest all profits back into the business.
NOW
0.00%
Software - Application Industry
- Max
- 105.87%
- 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 strategy is common for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | CLS | NOW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
CLS
37.86
Hardware, Equipment & Parts Industry
- Max
- 95.07
- Q3
- 57.90
- Median
- 37.14
- Q1
- 24.86
- Min
- 11.53
CLS’s P/E Ratio of 37.86 is within the middle range for the Hardware, Equipment & Parts 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
130.62
Software - Application Industry
- Max
- 194.53
- Q3
- 98.53
- Median
- 49.69
- Q1
- 22.37
- Min
- 0.40
NOW’s P/E Ratio of 130.62 is in the upper quartile for the Software - Application industry. This high valuation relative to peers suggests potential overvaluation risk and places significant pressure on the company to deliver exceptional future growth.
Forward P/E to Growth Ratio
CLS
1.84
Hardware, Equipment & Parts Industry
- Max
- 5.46
- Q3
- 3.10
- Median
- 1.89
- Q1
- 0.89
- Min
- 0.00
The Forward PEG Ratio is not a primary valuation metric for companies in the Hardware, Equipment & Parts industry.
NOW
6.98
Software - Application Industry
- Max
- 12.52
- Q3
- 5.42
- Median
- 1.59
- Q1
- 0.19
- Min
- 0.00
NOW’s Forward PEG Ratio of 6.98 is in the upper quartile for the Software - Application industry. This suggests the stock is expensive relative to its growth forecast compared to its peers, which may indicate overvaluation and warrant caution.
Price-to-Sales Ratio
CLS
1.54
Hardware, Equipment & Parts Industry
- Max
- 9.15
- Q3
- 5.41
- Median
- 2.41
- Q1
- 1.47
- Min
- 0.02
CLS’s P/S Ratio of 1.54 aligns with the market consensus for the Hardware, Equipment & Parts industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
NOW
17.54
Software - Application Industry
- Max
- 18.20
- Q3
- 8.68
- Median
- 4.82
- Q1
- 1.79
- Min
- 0.00
NOW’s P/S Ratio of 17.54 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.
Price-to-Book Ratio
CLS
10.03
Hardware, Equipment & Parts Industry
- Max
- 8.21
- Q3
- 4.70
- Median
- 3.06
- Q1
- 2.08
- Min
- 0.01
At 10.03, CLS’s P/B Ratio is at an extreme premium to the Hardware, Equipment & Parts industry. This signifies that the market‘s valuation is heavily reliant on future potential, rather than its current net asset value, which can be a high-risk proposition.
NOW
19.81
Software - Application Industry
- Max
- 18.02
- Q3
- 8.55
- Median
- 4.69
- Q1
- 2.09
- Min
- 0.00
The P/B Ratio is not a primary valuation metric for companies in the Software - Application industry, which may rely more on intangible assets or cash flow.
Valuation at a Glance
| Symbol | CLS | NOW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 37.86 | 130.62 |
| Forward PEG Ratio (TTM) | 1.84 | 6.98 |
| Price-to-Sales Ratio (P/S, TTM) | 1.54 | 17.54 |
| Price-to-Book Ratio (P/B, TTM) | 10.03 | 19.81 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 43.94 | 54.80 |
| EV-to-EBITDA (TTM) | 22.26 | 85.72 |
| EV-to-Sales (TTM) | 1.60 | 17.46 |