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

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

Company Profile

SymbolNOWPLTR
Company NameServiceNow, Inc.Palantir Technologies Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSoftware
Market Capitalization189.43 billion USD425.91 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 29, 2012September 30, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NOW and PLTR 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.

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

Historical Performance at a Glance

SymbolNOWPLTR
5-Day Price Return-0.81%-1.58%
13-Week Price Return-11.80%29.05%
26-Week Price Return12.48%112.01%
52-Week Price Return2.49%357.52%
Month-to-Date Return-0.81%-1.58%
Year-to-Date Return-13.89%137.38%
10-Day Avg. Volume1.37M54.99M
3-Month Avg. Volume1.51M71.68M
3-Month Volatility29.69%43.46%
Beta0.971.50

Profitability

Return on Equity (TTM)

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.

PLTR

14.64%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

PLTR’s Return on Equity of 14.64% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

NOW vs. PLTR: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

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.

PLTR

22.18%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 22.18% places PLTR in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

NOW vs. PLTR: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

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.

PLTR

16.55%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

PLTR’s Operating Profit Margin of 16.55% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

NOW vs. PLTR: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

SymbolNOWPLTR
Return on Equity (TTM)16.62%14.64%
Return on Assets (TTM)8.12%11.65%
Net Profit Margin (TTM)13.78%22.18%
Operating Profit Margin (TTM)13.28%16.55%
Gross Profit Margin (TTM)78.52%80.03%

Financial Strength

Current Ratio (MRQ)

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.

PLTR

6.32

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

PLTR’s Current Ratio of 6.32 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

NOW vs. PLTR: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

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.

PLTR

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

PLTR’s Debt-to-Equity Ratio of 0.00 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.

NOW vs. PLTR: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

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.

PLTR

-1.53

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

PLTR has a negative Interest Coverage Ratio of -1.53. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

NOW vs. PLTR: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

SymbolNOWPLTR
Current Ratio (MRQ)1.096.32
Quick Ratio (MRQ)0.996.19
Debt-to-Equity Ratio (MRQ)0.140.00
Interest Coverage Ratio (TTM)32.13-1.53

Growth

Revenue Growth

NOW vs. PLTR: 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

NOW vs. PLTR: 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)

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.

PLTR

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

PLTR 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 vs. PLTR: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

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.

PLTR

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

PLTR 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 vs. PLTR: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

SymbolNOWPLTR
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NOW

114.25

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

A P/E Ratio of 114.25 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.

PLTR

555.07

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

At 555.07, PLTR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NOW vs. PLTR: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

NOW

15.74

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

NOW’s P/S Ratio of 15.74 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.

PLTR

123.14

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 123.14, PLTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NOW vs. PLTR: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

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.

PLTR

54.26

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

At 54.26, PLTR’s P/B Ratio is at an extreme premium to the Software 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 vs. PLTR: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

SymbolNOWPLTR
Price-to-Earnings Ratio (TTM)114.25555.07
Price-to-Sales Ratio (TTM)15.74123.14
Price-to-Book Ratio (MRQ)19.4854.26
Price-to-Free Cash Flow Ratio (TTM)49.87247.95