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NOW vs. SAP: ServiceNow vs. SAP Stock Comparison

How do ServiceNow (NOW) and SAP (SAP) 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 SAP (SAP) both belong to the Software industry, though NOW is classified under Systems Software while SAP falls under Application Software.

ServiceNow (NOW) trades as ordinary local shares, while SAP (SAP) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for ServiceNow (NOW) and SAP (SAP)
Profile ItemNOWSAP
NameServiceNow Inc.SAP SE Sponsored ADR
Country/RegionUnited StatesGermany
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization145.07 billion USD251.44 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 29, 2012September 18, 1995
Security TypeCommon StockADR

Price Performance

Cumulative Growth

NOW
SAP
GSPC
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ServiceNow (NOW) vs. SAP (SAP), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for ServiceNow (NOW) and SAP (SAP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for ServiceNow (NOW) and SAP (SAP). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Total Return (1Y)-22.89%-16.96%
Total Return (3Y, Annualized)9.02%21.14%
Total Return (5Y, Annualized)2.18%11.08%

Risk Profile

Drawdown History

NOW
SAP
GSPC
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ServiceNow (NOW) vs. SAP (SAP), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for ServiceNow (NOW) and SAP (SAP). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Volatility (1Y, Annualized)57.44%38.73%
Beta (5Y)0.971.14
Max Drawdown (5Y)-64.54%-52.26%
Avg. Volume (3M)17.32M2.56M

Risk-Adjusted Performance

Risk-Return Positioning

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NOW and SAP are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Sharpe Ratio (1Y)-0.48-0.55
Sortino Ratio (1Y)-0.67-0.76

Profitability

ROE (TTM)

Both ServiceNow (NOW) at 14.24% and SAP (SAP) at 18.32% 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%

SAP

Software & Services industry group

18.32%

Max
62.27%
SAP
18.32%
Q3
18.32%
Median
5.48%
Q1
-13.62%
Min
-59.77%
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

SAP (SAP) at 20.41% retains a top-quartile share of revenue as profit, ahead of ServiceNow (NOW) at 11.34%, which keeps about the industry-typical share.

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%

SAP

Software & Services industry group

20.41%

Max
41.43%
SAP
20.41%
Q3
14.96%
Median
4.26%
Q1
-5.85%
Min
-30.95%
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

SAP (SAP) at 27.62% operates in the top operating margin quartile, ahead of ServiceNow (NOW) at 4.06%, which runs around its industry’s norm.

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%

SAP

Software & Services industry group

27.62%

Max
47.12%
SAP
27.62%
Q3
15.51%
Median
4.87%
Q1
-6.45%
Min
-39.13%
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
ROE (TTM)14.24%18.32%
ROA (TTM)4.25%9.54%
Net Margin (TTM)11.34%20.41%
Operating Margin (TTM)4.06%27.62%
Gross Margin (TTM)74.77%73.66%

Growth

Revenue Growth

Both ServiceNow (NOW) at 20.88% and SAP (SAP) at 7.68% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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ServiceNow (NOW) vs. SAP (SAP): A comparison of their Revenue Growth across different time periods.

EPS Growth

SAP (SAP) at 130.19% sits in the top EPS growth quartile, while ServiceNow (NOW) at 22.08% is closer to the peer norm — faster per-share earnings growth for SAP.

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ServiceNow (NOW) vs. SAP (SAP): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Revenue Growth (YoY)20.88%7.68%
Revenue Growth (3Y CAGR)22.38%7.63%
EPS Growth (YoY)22.08%130.19%
EPS Growth (3Y CAGR)73.46%46.25%

Financial Strength

Current Ratio (MRQ)

SAP (SAP) at 1.15 keeps current ratio within its industry’s typical mid-range, while ServiceNow (NOW) at 0.70 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOW.

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

SAP

Software & Services industry group

1.15

Max
5.11
Q3
2.74
Median
1.63
SAP
1.15
Q1
1.02
Min
0.03
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both ServiceNow (NOW) at 0.68 and SAP (SAP) at 0.22 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

SAP

Software & Services industry group

0.22

Max
2.52
Q3
1.10
Median
0.35
SAP
0.22
Q1
0.06
Min
0.00
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Current Ratio (MRQ)0.701.15
Debt / Equity (MRQ)0.680.22
Net Debt / EBITDA1.31-0.14

Dividends

Dividend Yield (TTM)

ServiceNow (NOW) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile SAP (SAP) reports a yield of 1.16%, ranking against industry peers normally.

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%

SAP

Software & Services industry group

1.16%

SAP
1.16%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

ServiceNow (NOW) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile SAP (SAP) reports a payout of 37.70%, ranking against industry peers normally.

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%

SAP

Software & Services industry group

37.70%

SAP
37.70%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
Dividend Yield (TTM)0.00%1.16%
Dividend Payout Ratio (TTM)0.00%37.70%

Valuation

P/E Ratio (TTM)

SAP (SAP) at 27.97 is near its industry’s usual P/E ratio, while ServiceNow (NOW) at 87.70 sits in the richer quartile — NOW needs stronger growth or earnings quality to justify the premium.

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

SAP

Software & Services industry group

27.97

Max
121.09
Q3
60.42
Median
31.84
SAP
27.97
Q1
17.70
Min
6.45
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

SAP (SAP) at 6.58 is priced about in line with its industry on P/S ratio, while ServiceNow (NOW) at 9.85 sits in the pricier quartile — NOW costs more per dollar of sales.

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

SAP

Software & Services industry group

6.58

Max
19.98
Q3
9.41
SAP
6.58
Median
4.36
Q1
2.30
Min
0.02
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: ServiceNow (NOW) at 11.59 sits in the upper P/B ratio quartile, and SAP (SAP) at 70.66 prices even higher, above its industry range.

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

SAP

Software & Services industry group

70.66

SAP
70.66
Max
19.30
Q3
9.10
Median
4.43
Q1
1.98
Min
-3.90
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ServiceNow (NOW) vs. SAP (SAP): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for ServiceNow (NOW) and SAP (SAP)
MetricNOWSAP
P/E Ratio (TTM)87.7027.97
P/S Ratio (TTM)9.856.58
P/B Ratio (MRQ)11.5970.66
Free Cash Flow Yield (TTM)3.55%3.62%