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

Updated on August 23, 2025

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

Company Profile

Symbol	GWRE	NOW
Company Name	Guidewire Software, Inc.	ServiceNow, Inc.
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Software
Market Capitalization	18.20 billion USD	184.74 billion USD
Exchange	NYSE	NYSE
Listing Date	January 25, 2012	June 29, 2012
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of GWRE 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.

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

Historical Performance at a Glance

Symbol	GWRE	NOW
5-Day Price Return	3.48%	4.63%
13-Week Price Return	0.34%	-13.21%
26-Week Price Return	-0.23%	-10.03%
52-Week Price Return	45.65%	6.89%
Month-to-Date Return	-4.45%	-5.61%
Year-to-Date Return	28.22%	-16.02%
10-Day Avg. Volume	0.65M	2.27M
3-Month Avg. Volume	0.78M	1.60M
3-Month Volatility	38.37%	26.69%
Beta	1.21	0.94

Profitability

Return on Equity (TTM)

GWRE

2.64%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

GWRE’s Return on Equity of 2.64% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

NOW

16.62%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

GWRE vs. NOW: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

GWRE

3.04%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

GWRE’s Net Profit Margin of 3.04% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

NOW

13.78%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

GWRE vs. NOW: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

GWRE

-2.79%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

GWRE has a negative Operating Profit Margin of -2.79%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

NOW

13.28%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

GWRE vs. NOW: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

Symbol	GWRE	NOW
Return on Equity (TTM)	2.64%	16.62%
Return on Assets (TTM)	1.41%	8.12%
Net Profit Margin (TTM)	3.04%	13.78%
Operating Profit Margin (TTM)	-2.79%	13.28%
Gross Profit Margin (TTM)	62.16%	78.52%

Financial Strength

Current Ratio (MRQ)

GWRE

3.23

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

GWRE’s Current Ratio of 3.23 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

NOW

1.09

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

GWRE vs. NOW: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

GWRE

0.49

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

GWRE’s Debt-to-Equity Ratio of 0.49 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NOW

0.14

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

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

GWRE vs. NOW: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

GWRE

-7.00

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

GWRE has a negative Interest Coverage Ratio of -7.00. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

NOW

32.13

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

NOW’s Interest Coverage Ratio of 32.13 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

GWRE vs. NOW: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

Symbol	GWRE	NOW
Current Ratio (MRQ)	3.23	1.09
Quick Ratio (MRQ)	3.04	0.99
Debt-to-Equity Ratio (MRQ)	0.49	0.14
Interest Coverage Ratio (TTM)	-7.00	32.13

Growth

Revenue Growth

GWRE vs. NOW: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GWRE vs. NOW: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GWRE

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

GWRE 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 Industry

Max: 0.08%
Q3: 0.03%
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.

GWRE vs. NOW: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

GWRE

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

GWRE 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 Industry

Max: 1.32%
Q3: 0.53%
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.

GWRE vs. NOW: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

Symbol	GWRE	NOW
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

GWRE

519.59

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

At 519.59, GWRE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NOW

111.05

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

A P/E Ratio of 111.05 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

GWRE vs. NOW: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

GWRE

15.81

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

GWRE’s P/S Ratio of 15.81 is in the upper echelon for the Software 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

15.30

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

NOW’s P/S Ratio of 15.30 is in the upper echelon for the Software 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.

GWRE vs. NOW: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

GWRE

12.61

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

GWRE’s P/B Ratio of 12.61 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NOW

19.48

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

NOW’s P/B Ratio of 19.48 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

GWRE vs. NOW: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

Symbol	GWRE	NOW
Price-to-Earnings Ratio (TTM)	519.59	111.05
Price-to-Sales Ratio (TTM)	15.81	15.30
Price-to-Book Ratio (MRQ)	12.61	19.48
Price-to-Free Cash Flow Ratio (TTM)	60.06	48.48