IT vs. NOW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IT and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IT | NOW |
|---|---|---|
| Company Name | Gartner, Inc. | ServiceNow, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Software |
| Market Capitalization | 20.00 billion USD | 194.24 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | October 5, 1993 | June 29, 2012 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IT 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.
Historical Performance at a Glance
| Symbol | IT | NOW |
|---|---|---|
| 5-Day Price Return | 0.02% | -0.67% |
| 13-Week Price Return | -34.97% | -9.83% |
| 26-Week Price Return | -38.40% | 10.23% |
| 52-Week Price Return | -48.35% | 2.02% |
| Month-to-Date Return | 4.65% | -0.85% |
| Year-to-Date Return | -45.74% | -13.93% |
| 10-Day Avg. Volume | 1.93M | 1.53M |
| 3-Month Avg. Volume | 1.28M | 1.50M |
| 3-Month Volatility | 62.90% | 30.66% |
| Beta | 1.21 | 0.97 |
Profitability
Return on Equity (TTM)
IT
92.80%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
IT’s Return on Equity of 92.80% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
NOW
16.62%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
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.
Net Profit Margin (TTM)
IT
19.71%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 19.71% places IT in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
NOW
13.78%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
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.
Operating Profit Margin (TTM)
IT
18.20%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
An Operating Profit Margin of 18.20% places IT in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
NOW
13.28%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
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.
Profitability at a Glance
| Symbol | IT | NOW |
|---|---|---|
| Return on Equity (TTM) | 92.80% | 16.62% |
| Return on Assets (TTM) | 15.25% | 8.12% |
| Net Profit Margin (TTM) | 19.71% | 13.78% |
| Operating Profit Margin (TTM) | 18.20% | 13.28% |
| Gross Profit Margin (TTM) | 67.96% | 78.52% |
Financial Strength
Current Ratio (MRQ)
IT
1.11
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
IT’s Current Ratio of 1.11 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
NOW
1.09
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
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.
Debt-to-Equity Ratio (MRQ)
IT
1.61
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
IT’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 1.61. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
NOW
0.14
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- 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.
Interest Coverage Ratio (TTM)
IT
20.97
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
IT’s Interest Coverage Ratio of 20.97 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
NOW
32.13
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
NOW’s Interest Coverage Ratio of 32.13 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | IT | NOW |
|---|---|---|
| Current Ratio (MRQ) | 1.11 | 1.09 |
| Quick Ratio (MRQ) | 1.07 | 0.99 |
| Debt-to-Equity Ratio (MRQ) | 1.61 | 0.14 |
| Interest Coverage Ratio (TTM) | 20.97 | 32.13 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
IT
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
IT 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
- 0.22%
- Q3
- 0.11%
- 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.
Dividend Payout Ratio (TTM)
IT
0.00%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
IT 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
- 3.29%
- Q3
- 2.41%
- 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.
Dividend at a Glance
| Symbol | IT | NOW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
IT
15.76
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
In the lower quartile for the IT Services industry, IT’s P/E Ratio of 15.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
NOW
115.24
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
A P/E Ratio of 115.24 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.
Price-to-Sales Ratio (TTM)
IT
3.11
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
IT’s P/S Ratio of 3.11 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
NOW
15.88
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
NOW’s P/S Ratio of 15.88 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.
Price-to-Book Ratio (MRQ)
IT
20.30
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
At 20.30, IT’s P/B Ratio is at an extreme premium to the IT Services 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
19.48
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- 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.
Valuation at a Glance
| Symbol | IT | NOW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.76 | 115.24 |
| Price-to-Sales Ratio (TTM) | 3.11 | 15.88 |
| Price-to-Book Ratio (MRQ) | 20.30 | 19.48 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.19 | 50.31 |