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

Updated on August 25, 2025

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

Company Profile

NOW is a standard domestic listing, while SAP trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	NOW	SAP
Company Name	ServiceNow, Inc.	SAP SE
Country	United States	Germany
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Software
Market Capitalization	184.74 billion USD	320.61 billion USD
Exchange	NYSE	NYSE
Listing Date	June 29, 2012	September 18, 1995
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of NOW and SAP 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. SAP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	NOW	SAP
5-Day Price Return	4.63%	-0.88%
13-Week Price Return	-13.21%	-10.87%
26-Week Price Return	-10.03%	-14.46%
52-Week Price Return	6.89%	20.56%
Month-to-Date Return	-5.61%	-5.54%
Year-to-Date Return	-16.02%	0.25%
10-Day Avg. Volume	2.27M	1.46M
3-Month Avg. Volume	1.60M	1.57M
3-Month Volatility	26.69%	25.86%
Beta	0.94	0.98

Profitability

Return on Equity (TTM)

NOW

16.62%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

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.

SAP

15.09%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

SAP’s Return on Equity of 15.09% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

NOW

13.78%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

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.

SAP

18.23%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

SAP’s Net Profit Margin of 18.23% 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.

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

Operating Profit Margin (TTM)

NOW

13.28%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

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.

SAP

25.13%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

An Operating Profit Margin of 25.13% places SAP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

Symbol	NOW	SAP
Return on Equity (TTM)	16.62%	15.09%
Return on Assets (TTM)	8.12%	9.09%
Net Profit Margin (TTM)	13.78%	18.23%
Operating Profit Margin (TTM)	13.28%	25.13%
Gross Profit Margin (TTM)	78.52%	73.80%

Financial Strength

Current Ratio (MRQ)

NOW

1.09

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

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.

SAP

1.03

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

SAP’s Current Ratio of 1.03 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

NOW

0.14

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
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.

SAP

0.21

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

SAP’s Debt-to-Equity Ratio of 0.21 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. SAP: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

NOW

32.13

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

NOW’s Interest Coverage Ratio of 32.13 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

SAP

32.64

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

SAP’s Interest Coverage Ratio of 32.64 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

Symbol	NOW	SAP
Current Ratio (MRQ)	1.09	1.03
Quick Ratio (MRQ)	0.99	1.03
Debt-to-Equity Ratio (MRQ)	0.14	0.21
Interest Coverage Ratio (TTM)	32.13	32.64

Growth

Revenue Growth

NOW vs. SAP: 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. SAP: 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: 0.08%
Q3: 0.03%
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.

SAP

0.99%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SAP’s Dividend Yield of 0.99% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

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

Dividend Payout Ratio (TTM)

NOW

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
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.

SAP

161.64%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

At 161.64%, SAP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

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

Dividend at a Glance

Symbol	NOW	SAP
Dividend Yield (TTM)	0.00%	0.99%
Dividend Payout Ratio (TTM)	0.00%	161.64%

Valuation

Price-to-Earnings Ratio (TTM)

NOW

111.05

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

A P/E Ratio of 111.05 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.

SAP

42.26

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

SAP’s P/E Ratio of 42.26 is within the middle range for the Software 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 vs. SAP: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

NOW

15.30

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

NOW’s P/S Ratio of 15.30 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.

SAP

7.70

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

SAP’s P/S Ratio of 7.70 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NOW vs. SAP: 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: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
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.

SAP

7.74

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

SAP’s P/B Ratio of 7.74 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NOW vs. SAP: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

Symbol	NOW	SAP
Price-to-Earnings Ratio (TTM)	111.05	42.26
Price-to-Sales Ratio (TTM)	15.30	7.70
Price-to-Book Ratio (MRQ)	19.48	7.74
Price-to-Free Cash Flow Ratio (TTM)	48.48	37.81