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

Updated on October 4, 2025

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

Company Profile

Symbol	MSI	NOW
Company Name	Motorola Solutions, Inc.	ServiceNow, Inc.
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Communications Equipment	Software
Market Capitalization	76.13 billion USD	194.24 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	June 29, 2012
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of MSI 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.

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

Historical Performance at a Glance

Symbol	MSI	NOW
5-Day Price Return	0.47%	-0.67%
13-Week Price Return	8.76%	-9.83%
26-Week Price Return	6.04%	10.23%
52-Week Price Return	2.45%	2.02%
Month-to-Date Return	-3.21%	-0.85%
Year-to-Date Return	-1.07%	-13.93%
10-Day Avg. Volume	0.88M	1.53M
3-Month Avg. Volume	0.94M	1.50M
3-Month Volatility	16.50%	30.66%
Beta	0.99	0.97

Profitability

Return on Equity (TTM)

MSI

127.51%

Communications Equipment Industry

Max: 32.30%
Q3: 20.90%
Median: 9.10%
Q1: 4.29%
Min: -13.50%

MSI’s Return on Equity of 127.51% is exceptionally high, placing it well beyond the typical range for the Communications Equipment 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.

MSI vs. NOW: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Software industry benchmarks.

Net Profit Margin (TTM)

MSI

19.08%

Communications Equipment Industry

Max: 23.65%
Q3: 12.56%
Median: 5.62%
Q1: 2.50%
Min: -3.09%

A Net Profit Margin of 19.08% places MSI in the upper quartile for the Communications Equipment 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.

MSI vs. NOW: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Operating Profit Margin (TTM)

MSI

25.23%

Communications Equipment Industry

Max: 25.23%
Q3: 13.72%
Median: 6.44%
Q1: 3.00%
Min: -10.95%

An Operating Profit Margin of 25.23% places MSI in the upper quartile for the Communications Equipment 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.

MSI vs. NOW: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Profitability at a Glance

Symbol	MSI	NOW
Return on Equity (TTM)	127.51%	16.62%
Return on Assets (TTM)	14.27%	8.12%
Net Profit Margin (TTM)	19.08%	13.78%
Operating Profit Margin (TTM)	25.23%	13.28%
Gross Profit Margin (TTM)	51.34%	78.52%

Financial Strength

Current Ratio (MRQ)

MSI

1.73

Communications Equipment Industry

Max: 3.33
Q3: 2.13
Median: 1.55
Q1: 1.15
Min: 0.91

MSI’s Current Ratio of 1.73 aligns with the median group of the Communications Equipment 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.

MSI vs. NOW: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MSI

3.93

Communications Equipment Industry

Max: 1.44
Q3: 0.86
Median: 0.53
Q1: 0.22
Min: 0.00

With a Debt-to-Equity Ratio of 3.93, MSI operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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.

MSI vs. NOW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Interest Coverage Ratio (TTM)

MSI

8.92

Communications Equipment Industry

Max: 55.49
Q3: 34.19
Median: 7.59
Q1: 3.73
Min: -9.94

MSI’s Interest Coverage Ratio of 8.92 is positioned comfortably within the norm for the Communications Equipment 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.

MSI vs. NOW: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Financial Strength at a Glance

Symbol	MSI	NOW
Current Ratio (MRQ)	1.73	1.09
Quick Ratio (MRQ)	1.54	0.99
Debt-to-Equity Ratio (MRQ)	3.93	0.14
Interest Coverage Ratio (TTM)	8.92	32.13

Growth

Revenue Growth

MSI 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

MSI 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)

MSI

0.91%

Communications Equipment Industry

Max: 8.13%
Q3: 3.29%
Median: 0.94%
Q1: 0.00%
Min: 0.00%

MSI’s Dividend Yield of 0.91% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

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.

MSI vs. NOW: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

MSI

32.70%

Communications Equipment Industry

Max: 111.16%
Q3: 70.91%
Median: 30.78%
Q1: 0.00%
Min: 0.00%

MSI’s Dividend Payout Ratio of 32.70% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

MSI vs. NOW: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend at a Glance

Symbol	MSI	NOW
Dividend Yield (TTM)	0.91%	0.00%
Dividend Payout Ratio (TTM)	32.70%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MSI

35.88

Communications Equipment Industry

Max: 103.74
Q3: 61.65
Median: 26.20
Q1: 18.12
Min: 4.19

MSI’s P/E Ratio of 35.88 is within the middle range for the Communications Equipment 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

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.

MSI vs. NOW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

MSI

6.84

Communications Equipment Industry

Max: 6.86
Q3: 6.24
Median: 2.44
Q1: 1.02
Min: 0.48

MSI’s P/S Ratio of 6.84 is in the upper echelon for the Communications Equipment 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

15.88

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.

MSI vs. NOW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

MSI

35.66

Communications Equipment Industry

Max: 6.28
Q3: 5.73
Median: 3.32
Q1: 2.02
Min: 0.42

At 35.66, MSI’s P/B Ratio is at an extreme premium to the Communications Equipment 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.

MSI vs. NOW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Valuation at a Glance

Symbol	MSI	NOW
Price-to-Earnings Ratio (TTM)	35.88	115.24
Price-to-Sales Ratio (TTM)	6.84	15.88
Price-to-Book Ratio (MRQ)	35.66	19.48
Price-to-Free Cash Flow Ratio (TTM)	31.84	50.31