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

Updated on August 31, 2025

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

Company Profile

Symbol	NOW	SHOP
Company Name	ServiceNow, Inc.	Shopify Inc.
Country	United States	Canada
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	IT Services
Market Capitalization	190.39 billion USD	183.33 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	June 29, 2012	May 20, 2015
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	NOW	SHOP
5-Day Price Return	4.26%	0.53%
13-Week Price Return	-9.63%	31.18%
26-Week Price Return	-0.52%	27.34%
52-Week Price Return	12.69%	94.79%
Month-to-Date Return	-2.72%	15.60%
Year-to-Date Return	-13.46%	32.87%
10-Day Avg. Volume	1.86M	5.57M
3-Month Avg. Volume	1.59M	10.20M
3-Month Volatility	28.76%	57.72%
Beta	0.93	2.76

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.

SHOP

20.91%

IT Services Industry

Max: 29.51%
Q3: 16.98%
Median: 13.47%
Q1: 7.93%
Min: -3.97%

In the upper quartile for the IT Services industry, SHOP’s Return on Equity of 20.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

NOW vs. SHOP: A comparison of their Return on Equity (TTM) against their respective Software and IT Services industry benchmarks.

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.

SHOP

23.42%

IT Services Industry

Max: 19.82%
Q3: 11.49%
Median: 6.67%
Q1: 3.61%
Min: -4.62%

SHOP’s Net Profit Margin of 23.42% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

NOW vs. SHOP: A comparison of their Net Profit Margin (TTM) against their respective Software and IT Services industry benchmarks.

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.

SHOP

12.40%

IT Services Industry

Max: 21.69%
Q3: 14.50%
Median: 10.06%
Q1: 6.98%
Min: 0.06%

SHOP’s Operating Profit Margin of 12.40% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

NOW vs. SHOP: A comparison of their Operating Profit Margin (TTM) against their respective Software and IT Services industry benchmarks.

Profitability at a Glance

Symbol	NOW	SHOP
Return on Equity (TTM)	16.62%	20.91%
Return on Assets (TTM)	8.12%	17.30%
Net Profit Margin (TTM)	13.78%	23.42%
Operating Profit Margin (TTM)	13.28%	12.40%
Gross Profit Margin (TTM)	78.52%	49.34%

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.

SHOP

3.85

IT Services Industry

Max: 2.42
Q3: 1.81
Median: 1.47
Q1: 1.09
Min: 0.44

SHOP’s Current Ratio of 3.85 is exceptionally high, placing it well outside the typical range for the IT Services 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. SHOP: A comparison of their Current Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

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.

SHOP

0.08

IT Services Industry

Max: 2.33
Q3: 1.17
Median: 0.54
Q1: 0.15
Min: 0.00

Falling into the lower quartile for the IT Services industry, SHOP’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NOW vs. SHOP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

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.

SHOP

-0.29

IT Services Industry

Max: 144.50
Q3: 84.49
Median: 13.76
Q1: 2.59
Min: -28.13

SHOP has a negative Interest Coverage Ratio of -0.29. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

NOW vs. SHOP: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Financial Strength at a Glance

Symbol	NOW	SHOP
Current Ratio (MRQ)	1.09	3.85
Quick Ratio (MRQ)	0.99	3.85
Debt-to-Equity Ratio (MRQ)	0.14	0.08
Interest Coverage Ratio (TTM)	32.13	-0.29

Growth

Revenue Growth

NOW vs. SHOP: 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. SHOP: 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.

SHOP

0.00%

IT Services Industry

Max: 2.80%
Q3: 1.74%
Median: 0.62%
Q1: 0.00%
Min: 0.00%

SHOP 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. SHOP: A comparison of their Dividend Yield (TTM) against their respective Software and IT Services industry benchmarks.

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.

SHOP

0.00%

IT Services Industry

Max: 147.75%
Q3: 63.58%
Median: 24.63%
Q1: 0.00%
Min: 0.00%

SHOP 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. SHOP: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Dividend at a Glance

Symbol	NOW	SHOP
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

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.

SHOP

76.39

IT Services Industry

Max: 41.55
Q3: 31.54
Median: 23.25
Q1: 18.12
Min: 6.57

At 76.39, SHOP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services 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. SHOP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and IT Services industry benchmarks.

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.

SHOP

17.89

IT Services Industry

Max: 6.61
Q3: 4.37
Median: 2.02
Q1: 1.20
Min: 0.19

With a P/S Ratio of 17.89, SHOP trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NOW vs. SHOP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and IT Services industry benchmarks.

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.

SHOP

12.34

IT Services Industry

Max: 11.19
Q3: 6.38
Median: 3.47
Q1: 2.31
Min: 0.96

At 12.34, SHOP’s P/B Ratio is at an extreme premium to the IT Services 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. SHOP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

Valuation at a Glance

Symbol	NOW	SHOP
Price-to-Earnings Ratio (TTM)	111.05	76.39
Price-to-Sales Ratio (TTM)	15.30	17.89
Price-to-Book Ratio (MRQ)	19.48	12.34
Price-to-Free Cash Flow Ratio (TTM)	48.48	98.59