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MSFT vs. NOW: Microsoft vs. ServiceNow Stock Comparison

How do Microsoft (MSFT) and ServiceNow (NOW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and ServiceNow (NOW) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.

Company profile comparison for Microsoft (MSFT) and ServiceNow (NOW)
Profile ItemMSFTNOW
NameMicrosoft Corporation Common StockServiceNow Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareSystems Software
Market Capitalization4,018.33 billion USD145.07 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 13, 1986June 29, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
NOW
GSPC
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Microsoft (MSFT) vs. ServiceNow (NOW), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microsoft (MSFT) and ServiceNow (NOW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and ServiceNow (NOW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Total Return (1Y)7.24%-22.89%
Total Return (3Y, Annualized)19.52%9.02%
Total Return (5Y, Annualized)13.97%2.18%

Risk Profile

Drawdown History

MSFT
NOW
GSPC
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Microsoft (MSFT) vs. ServiceNow (NOW), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microsoft (MSFT) and ServiceNow (NOW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Volatility (1Y, Annualized)32.78%57.44%
Beta (5Y)1.060.97
Max Drawdown (5Y)-37.15%-64.54%
Avg. Volume (3M)27.19M17.32M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and NOW are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Sharpe Ratio (1Y)0.09-0.48
Sortino Ratio (1Y)0.13-0.67

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.04% sits in the top ROE quartile, while ServiceNow (NOW) at 14.24% is closer to the peer norm — stronger capital efficiency for MSFT.

MSFT

Software & Services industry group

34.04%

Max
62.27%
MSFT
34.04%
Q3
18.32%
Median
5.48%
Q1
-13.62%
Min
-59.77%

NOW

Software & Services industry group

14.24%

Max
62.27%
Q3
18.32%
NOW
14.24%
Median
5.48%
Q1
-13.62%
Min
-59.77%
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 40.31% retains a top-quartile share of revenue as profit, ahead of ServiceNow (NOW) at 11.34%, which keeps about the industry-typical share.

MSFT

Software & Services industry group

40.31%

Max
41.43%
MSFT
40.31%
Q3
14.96%
Median
4.26%
Q1
-5.85%
Min
-30.95%

NOW

Software & Services industry group

11.34%

Max
41.43%
Q3
14.96%
NOW
11.34%
Median
4.26%
Q1
-5.85%
Min
-30.95%
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 45.11% operates in the top operating margin quartile, ahead of ServiceNow (NOW) at 4.06%, which runs around its industry’s norm.

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
15.51%
Median
4.87%
Q1
-6.45%
Min
-39.13%

NOW

Software & Services industry group

4.06%

Max
47.12%
Q3
15.51%
Median
4.87%
NOW
4.06%
Q1
-6.45%
Min
-39.13%
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
ROE (TTM)34.04%14.24%
ROA (TTM)14.09%4.25%
Net Margin (TTM)40.31%11.34%
Operating Margin (TTM)45.11%4.06%
Gross Margin (TTM)67.94%74.77%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and ServiceNow (NOW) at 20.88% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Microsoft (MSFT) at 31.60% and ServiceNow (NOW) at 22.08% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Revenue Growth (YoY)17.79%20.88%
Revenue Growth (3Y CAGR)16.12%22.38%
EPS Growth (YoY)31.60%22.08%
EPS Growth (3Y CAGR)22.86%73.46%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while ServiceNow (NOW) at 0.70 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOW.

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.74
Median
1.63
MSFT
1.23
Q1
1.02
Min
0.03

NOW

Software & Services industry group

0.70

Max
5.11
Q3
2.74
Median
1.63
Q1
1.02
NOW
0.70
Min
0.03
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.29 and ServiceNow (NOW) at 0.68 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.29

Max
2.52
Q3
1.10
Median
0.35
MSFT
0.29
Q1
0.06
Min
0.00

NOW

Software & Services industry group

0.68

Max
2.52
Q3
1.10
NOW
0.68
Median
0.35
Q1
0.06
Min
0.00
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Current Ratio (MRQ)1.230.70
Debt / Equity (MRQ)0.290.68
Net Debt / EBITDA0.271.31

Dividends

Dividend Yield (TTM)

ServiceNow (NOW) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.68%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.68%

MSFT
0.68%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW

Software & Services industry group

0.00%

NOW
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

ServiceNow (NOW) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.83%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW

Software & Services industry group

0.00%

NOW
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
Dividend Yield (TTM)0.68%0.00%
Dividend Payout Ratio (TTM)19.83%0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 30.15 is near its industry’s usual P/E ratio, while ServiceNow (NOW) at 87.70 sits in the richer quartile — NOW needs stronger growth or earnings quality to justify the premium.

MSFT

Software & Services industry group

30.15

Max
121.09
Q3
60.42
Median
31.84
MSFT
30.15
Q1
17.70
Min
6.45

NOW

Software & Services industry group

87.70

Max
121.09
NOW
87.70
Q3
60.42
Median
31.84
Q1
17.70
Min
6.45
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Both Microsoft (MSFT) at 12.11 and ServiceNow (NOW) at 9.85 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

MSFT

Software & Services industry group

12.11

Max
19.98
MSFT
12.11
Q3
9.41
Median
4.36
Q1
2.30
Min
0.02

NOW

Software & Services industry group

9.85

Max
19.98
NOW
9.85
Q3
9.41
Median
4.36
Q1
2.30
Min
0.02
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 9.09 is valued about in line with its industry on P/B ratio, while ServiceNow (NOW) at 11.59 carries an above-peer premium to book — NOW is pricier on assets.

MSFT

Software & Services industry group

9.09

Max
19.30
Q3
9.10
MSFT
9.09
Median
4.43
Q1
1.98
Min
-3.90

NOW

Software & Services industry group

11.59

Max
19.30
NOW
11.59
Q3
9.10
Median
4.43
Q1
1.98
Min
-3.90
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Microsoft (MSFT) vs. ServiceNow (NOW): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and ServiceNow (NOW)
MetricMSFTNOW
P/E Ratio (TTM)30.1587.70
P/S Ratio (TTM)12.119.85
P/B Ratio (MRQ)9.0911.59
Free Cash Flow Yield (TTM)0.41%3.55%