NOW vs. PANW: ServiceNow vs. Palo Alto Networks Stock Comparison
How do ServiceNow (NOW) and Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | NOW | PANW |
|---|---|---|
| Name | ServiceNow Inc. | Palo Alto Networks, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Systems Software | Systems Software |
| Market Capitalization | 145.07 billion USD | 330.33 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | June 29, 2012 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NOW | PANW |
|---|---|---|
| Total Return (1Y) | -22.89% | 87.90% |
| Total Return (3Y, Annualized) | 9.02% | 45.65% |
| Total Return (5Y, Annualized) | 2.18% | 36.66% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NOW | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 57.44% | 48.13% |
| Beta (5Y) | 0.97 | 0.94 |
| Max Drawdown (5Y) | -64.54% | -36.01% |
| Avg. Volume (3M) | 17.32M | 5.97M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NOW | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.48 | 1.73 |
| Sortino Ratio (1Y) | -0.67 | 2.81 |
Profitability
ROE (TTM)
Both ServiceNow (NOW) at 14.24% and Palo Alto Networks (PANW) at 1.74% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
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%
PANW
Software & Services industry group
1.74%
- Max
- 62.27%
- Q3
- 18.32%
- Median
- 5.48%
- PANW
- 1.74%
- Q1
- -13.62%
- Min
- -59.77%
Net Margin (TTM)
Both ServiceNow (NOW) at 11.34% and Palo Alto Networks (PANW) at 2.67% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
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%
PANW
Software & Services industry group
2.67%
- Max
- 41.43%
- Q3
- 14.96%
- Median
- 4.26%
- PANW
- 2.67%
- Q1
- -5.85%
- Min
- -30.95%
Operating Margin (TTM)
Both ServiceNow (NOW) at 4.06% and Palo Alto Networks (PANW) at 5.40% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
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%
PANW
Software & Services industry group
5.40%
- Max
- 47.12%
- Q3
- 15.51%
- PANW
- 5.40%
- Median
- 4.87%
- Q1
- -6.45%
- Min
- -39.13%
Profitability Metrics
| Metric | NOW | PANW |
|---|---|---|
| ROE (TTM) | 14.24% | 1.74% |
| ROA (TTM) | 4.25% | 1.40% |
| Net Margin (TTM) | 11.34% | 2.67% |
| Operating Margin (TTM) | 4.06% | 5.40% |
| Gross Margin (TTM) | 74.77% | 70.38% |
Growth
Revenue Growth
Both ServiceNow (NOW) at 20.88% and Palo Alto Networks (PANW) at 24.50% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
ServiceNow (NOW) at 22.08% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | NOW | PANW |
|---|---|---|
| Revenue Growth (YoY) | 20.88% | 24.50% |
| Revenue Growth (3Y CAGR) | 22.38% | 18.54% |
| EPS Growth (YoY) | 22.08% | -75.00% |
| EPS Growth (3Y CAGR) | 73.46% | -14.50% |
Financial Strength
Current Ratio (MRQ)
Both ServiceNow (NOW) at 0.70 and Palo Alto Networks (PANW) at 0.87 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
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
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.74
- Median
- 1.63
- Q1
- 1.02
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Both ServiceNow (NOW) at 0.68 and Palo Alto Networks (PANW) at 0.09 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.10
- Median
- 0.35
- PANW
- 0.09
- Q1
- 0.06
- Min
- 0.00
Financial Strength Metrics
| Metric | NOW | PANW |
|---|---|---|
| Current Ratio (MRQ) | 0.70 | 0.87 |
| Debt / Equity (MRQ) | 0.68 | 0.09 |
| Net Debt / EBITDA | 1.31 | -0.32 |
Dividends
Dividend Yield (TTM)
Neither ServiceNow (NOW) nor Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 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 Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NOW | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: ServiceNow (NOW) at 87.70 sits in the richer P/E ratio quartile, and Palo Alto Networks (PANW) at 1,009.57 is richer still, above its industry range.
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
PANW
Software & Services industry group
1,009.57
- PANW
- 1,009.57
- Max
- 121.09
- Q3
- 60.42
- Median
- 31.84
- Q1
- 17.70
- Min
- 6.45
P/S Ratio (TTM)
Both look expensive on sales: ServiceNow (NOW) at 9.85 sits in the upper P/S ratio quartile, and Palo Alto Networks (PANW) at 28.77 prices even higher, above its industry range.
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
PANW
Software & Services industry group
28.77
- PANW
- 28.77
- Max
- 19.98
- Q3
- 9.41
- Median
- 4.36
- Q1
- 2.30
- Min
- 0.02
P/B Ratio (MRQ)
Both ServiceNow (NOW) at 11.59 and Palo Alto Networks (PANW) at 11.97 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
PANW
Software & Services industry group
11.97
- Max
- 19.30
- PANW
- 11.97
- Q3
- 9.10
- Median
- 4.43
- Q1
- 1.98
- Min
- -3.90
Valuation Metrics
| Metric | NOW | PANW |
|---|---|---|
| P/E Ratio (TTM) | 87.70 | 1,009.57 |
| P/S Ratio (TTM) | 9.85 | 28.77 |
| P/B Ratio (MRQ) | 11.59 | 11.97 |
| Free Cash Flow Yield (TTM) | 3.55% | 1.28% |