NOW vs. SHOP: ServiceNow vs. Shopify Stock Comparison
How do ServiceNow (NOW) and Shopify (SHOP) 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 Shopify (SHOP) both fall under the Software & Services industry group, but NOW is classified in Software while SHOP is classified in IT Services.
| Profile Item | NOW | SHOP |
|---|---|---|
| Name | ServiceNow Inc. | Shopify Inc. |
| Country/Region | United States | Canada |
| 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 | 191.58 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | June 29, 2012 | May 20, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NOW | SHOP |
|---|---|---|
| Total Return (1Y) | -39.72% | -0.87% |
| Total Return (3Y, Annualized) | -5.71% | 35.77% |
| Total Return (5Y, Annualized) | -5.55% | -0.57% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Shopify (SHOP) carries a highly aggressive beta of 2.65, indicating much higher sensitivity to broad-market moves, whereas ServiceNow (NOW) is closer to market-like at 0.98 — a noticeable difference in market-sensitivity profile.
| Metric | NOW | SHOP |
|---|---|---|
| Volatility (1Y, Annualized) | 64.49% | 59.71% |
| Beta (5Y) | 0.98 | 2.65 |
| Max Drawdown (5Y) | -64.54% | -84.82% |
| Avg. Volume (3M) | 15.74M | 8.79M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NOW | SHOP |
|---|---|---|
| Sharpe Ratio (1Y) | -0.68 | -0.09 |
| Sortino Ratio (1Y) | -0.89 | -0.12 |
Profitability
ROE (TTM)
Both ServiceNow (NOW) at 11.85% and Shopify (SHOP) at 16.83% 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%
SHOP
Software & Services industry group
16.83%
- Max
- 53.85%
- Q3
- 17.90%
- SHOP
- 16.83%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Both ServiceNow (NOW) at 9.36% and Shopify (SHOP) at 15.01% 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%
SHOP
Software & Services industry group
15.01%
- Max
- 41.17%
- Q3
- 15.28%
- SHOP
- 15.01%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Shopify (SHOP) at 18.39% operates in the top operating margin quartile, ahead of ServiceNow (NOW) at 17.39%, which runs around its industry’s norm.
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%
SHOP
Software & Services industry group
18.39%
- Max
- 46.89%
- SHOP
- 18.39%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | NOW | SHOP |
|---|---|---|
| ROE (TTM) | 11.85% | 16.83% |
| ROA (TTM) | 4.59% | 10.77% |
| Net Margin (TTM) | 9.36% | 15.01% |
| Operating Margin (TTM) | 17.39% | 18.39% |
| Gross Margin (TTM) | 73.08% | 47.49% |
Growth
Revenue Growth
Shopify (SHOP) at 30.14% sits in the top revenue growth quartile, while ServiceNow (NOW) at 20.88% is closer to the peer norm — faster top-line expansion for SHOP.
EPS Growth
Both ServiceNow (NOW) at 22.08% and Shopify (SHOP) at -39.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | NOW | SHOP |
|---|---|---|
| Revenue Growth (YoY) | 20.88% | 30.14% |
| Revenue Growth (3Y CAGR) | 22.38% | 27.31% |
| EPS Growth (YoY) | 22.08% | -39.47% |
| EPS Growth (3Y CAGR) | 73.46% | -- |
Financial Strength
Current Ratio (MRQ)
Shopify (SHOP) at 4.86 carries current ratio above its industry’s typical mid-range, while ServiceNow (NOW) at 0.72 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
SHOP
Software & Services industry group
4.86
- Max
- 5.11
- SHOP
- 4.86
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Shopify (SHOP) 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
SHOP
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- SHOP
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | NOW | SHOP |
|---|---|---|
| Current Ratio (MRQ) | 0.72 | 4.86 |
| Debt / Equity (MRQ) | 0.64 | 0.01 |
| Net Debt / EBITDA | 1.18 | -1.75 |
Dividends
Dividend Yield (TTM)
Neither ServiceNow (NOW) nor Shopify (SHOP) 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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 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 Shopify (SHOP) 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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NOW | SHOP |
|---|---|---|
| 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 Shopify (SHOP) at 91.36 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
SHOP
Software & Services industry group
91.36
- Max
- 112.94
- SHOP
- 91.36
- 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 Shopify (SHOP) at 13.52 sits in the pricier quartile — SHOP 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
SHOP
Software & Services industry group
13.52
- Max
- 17.91
- SHOP
- 13.52
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
ServiceNow (NOW) at 8.08 is valued about in line with its industry on P/B ratio, while Shopify (SHOP) at 15.02 carries an above-peer premium to book — SHOP is pricier on assets.
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
SHOP
Software & Services industry group
15.02
- Max
- 16.63
- SHOP
- 15.02
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | NOW | SHOP |
|---|---|---|
| P/E Ratio (TTM) | 73.36 | 91.36 |
| P/S Ratio (TTM) | 6.86 | 13.52 |
| P/B Ratio (MRQ) | 8.08 | 15.02 |
| Free Cash Flow Yield (TTM) | 5.44% | 0.86% |