NOW vs. OKTA: ServiceNow vs. Okta Stock Comparison
How do ServiceNow (NOW) and Okta (OKTA) 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
ServiceNow (NOW) and Okta (OKTA) both fall under the Software & Services industry group, but NOW is classified in Software while OKTA is classified in IT Services.
| Profile Item | NOW | OKTA |
|---|---|---|
| Name | ServiceNow Inc. | Okta Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Systems Software | Internet Services & Infrastructure |
| Market Capitalization | 105.84 billion USD | 29.49 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | June 29, 2012 | April 7, 2017 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Total Return (1Y) | -39.72% | 108.64% |
| Total Return (3Y, Annualized) | -5.71% | 38.93% |
| Total Return (5Y, Annualized) | -5.55% | -7.90% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Volatility (1Y, Annualized) | 64.49% | 70.25% |
| Beta (5Y) | 0.98 | 0.76 |
| Max Drawdown (5Y) | -64.54% | -83.22% |
| Avg. Volume (3M) | 15.74M | 4.23M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Sharpe Ratio (1Y) | -0.68 | 1.49 |
| Sortino Ratio (1Y) | -0.89 | 2.65 |
Profitability
ROE (TTM)
Both ServiceNow (NOW) at 11.85% and Okta (OKTA) at 4.31% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
NOW
Software & Services industry group
11.85%
- Max
- 53.85%
- Q3
- 17.90%
- NOW
- 11.85%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
OKTA
Software & Services industry group
4.31%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- OKTA
- 4.31%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Both ServiceNow (NOW) at 9.36% and Okta (OKTA) at 9.63% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
NOW
Software & Services industry group
9.36%
- Max
- 41.17%
- Q3
- 15.28%
- NOW
- 9.36%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
OKTA
Software & Services industry group
9.63%
- Max
- 41.17%
- Q3
- 15.28%
- OKTA
- 9.63%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both ServiceNow (NOW) at 17.39% and Okta (OKTA) at 13.29% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
NOW
Software & Services industry group
17.39%
- Max
- 46.89%
- Q3
- 17.64%
- NOW
- 17.39%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
OKTA
Software & Services industry group
13.29%
- Max
- 46.89%
- Q3
- 17.64%
- OKTA
- 13.29%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | NOW | OKTA |
|---|---|---|
| ROE (TTM) | 11.85% | 4.31% |
| ROA (TTM) | 4.59% | 1.58% |
| Net Margin (TTM) | 9.36% | 9.63% |
| Operating Margin (TTM) | 17.39% | 13.29% |
| Gross Margin (TTM) | 73.08% | 78.13% |
Growth
Revenue Growth
Both ServiceNow (NOW) at 20.88% and Okta (OKTA) at 11.84% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Okta (OKTA) at 2,083.33% clears its industry range for EPS growth, a much stronger earnings trajectory than ServiceNow (NOW) at 22.08%, which is closer to a typical peer reading.
Growth Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Revenue Growth (YoY) | 20.88% | 11.84% |
| Revenue Growth (3Y CAGR) | 22.38% | 16.25% |
| EPS Growth (YoY) | 22.08% | 2,083.33% |
| EPS Growth (3Y CAGR) | 73.46% | -- |
Financial Strength
Current Ratio (MRQ)
Okta (OKTA) at 1.53 keeps current ratio within its industry’s typical mid-range, while ServiceNow (NOW) at 0.72 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOW.
NOW
Software & Services industry group
0.72
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- NOW
- 0.72
- Min
- 0.03
OKTA
Software & Services industry group
1.53
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- OKTA
- 1.53
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Okta (OKTA) at 0.01 keeps leverage in the lower industry quartile, while ServiceNow (NOW) at 0.64 runs a more typical debt-to-equity mix.
NOW
Software & Services industry group
0.64
- Max
- 2.52
- Q3
- 1.13
- NOW
- 0.64
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
OKTA
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- OKTA
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Current Ratio (MRQ) | 0.72 | 1.53 |
| Debt / Equity (MRQ) | 0.64 | 0.01 |
| Net Debt / EBITDA | 1.18 | -7.00 |
Dividends
Dividend Yield (TTM)
Neither ServiceNow (NOW) nor Okta (OKTA) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
OKTA
Software & Services industry group
0.00%
- OKTA
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither ServiceNow (NOW) nor Okta (OKTA) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
OKTA
Software & Services industry group
0.00%
- OKTA
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NOW | OKTA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both ServiceNow (NOW) at 73.36 and Okta (OKTA) at 101.62 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.
NOW
Software & Services industry group
73.36
- Max
- 112.94
- NOW
- 73.36
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
OKTA
Software & Services industry group
101.62
- Max
- 112.94
- OKTA
- 101.62
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
ServiceNow (NOW) at 6.86 is priced about in line with its industry on P/S ratio, while Okta (OKTA) at 9.60 sits in the pricier quartile — OKTA costs more per dollar of sales.
NOW
Software & Services industry group
6.86
- Max
- 17.91
- Q3
- 8.78
- NOW
- 6.86
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
OKTA
Software & Services industry group
9.60
- Max
- 17.91
- OKTA
- 9.60
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both ServiceNow (NOW) at 8.08 and Okta (OKTA) at 4.23 are valued close to their industries’ norm against book — neither stands out from peers.
NOW
Software & Services industry group
8.08
- Max
- 16.63
- Q3
- 8.50
- NOW
- 8.08
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
OKTA
Software & Services industry group
4.23
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- OKTA
- 4.23
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | NOW | OKTA |
|---|---|---|
| P/E Ratio (TTM) | 73.36 | 101.62 |
| P/S Ratio (TTM) | 6.86 | 9.60 |
| P/B Ratio (MRQ) | 8.08 | 4.23 |
| Free Cash Flow Yield (TTM) | 5.44% | 3.52% |