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NOW vs. SNPS: ServiceNow vs. Synopsys Stock Comparison

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

Company profile comparison for ServiceNow (NOW) and Synopsys (SNPS)
Profile ItemNOWSNPS
NameServiceNow Inc.Synopsys Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization105.84 billion USD86.32 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJune 29, 2012February 26, 1992
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

NOW
SNPS
GSPC
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ServiceNow (NOW) vs. Synopsys (SNPS), 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 Synopsys (SNPS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
Total Return (1Y)-39.72%18.77%
Total Return (3Y, Annualized)-5.71%-2.57%
Total Return (5Y, Annualized)-5.55%6.06%

Risk Profile

Drawdown History

NOW
SNPS
GSPC
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ServiceNow (NOW) vs. Synopsys (SNPS), 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 Synopsys (SNPS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
Volatility (1Y, Annualized)64.49%45.03%
Beta (5Y)0.981.17
Max Drawdown (5Y)-64.54%-43.02%
Avg. Volume (3M)15.74M2.11M

Risk-Adjusted Performance

Risk-Return Positioning

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NOW and SNPS 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 Synopsys (SNPS)
MetricNOWSNPS
Sharpe Ratio (1Y)-0.680.32
Sortino Ratio (1Y)-0.890.49

Profitability

ROE (TTM)

Both ServiceNow (NOW) at 11.85% and Synopsys (SNPS) at 3.66% 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%

SNPS

Software & Services industry group

3.66%

Max
53.85%
Q3
17.90%
Median
6.59%
SNPS
3.66%
Q1
-9.59%
Min
-50.52%
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both ServiceNow (NOW) at 9.36% and Synopsys (SNPS) at 11.43% 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%

SNPS

Software & Services industry group

11.43%

Max
41.17%
Q3
15.28%
SNPS
11.43%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both ServiceNow (NOW) at 17.39% and Synopsys (SNPS) at 14.52% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

SNPS

Software & Services industry group

14.52%

Max
46.89%
Q3
17.64%
SNPS
14.52%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
ROE (TTM)11.85%3.66%
ROA (TTM)4.59%1.35%
Net Margin (TTM)9.36%11.43%
Operating Margin (TTM)17.39%14.52%
Gross Margin (TTM)73.08%82.92%

Growth

Revenue Growth

Both ServiceNow (NOW) at 20.88% and Synopsys (SNPS) at 15.12% 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. Synopsys (SNPS): A comparison of their Revenue Growth across different time periods.

EPS Growth

ServiceNow (NOW) at 22.08% is around its peer norm for EPS growth, while Synopsys (SNPS) at -44.59% drops into the bottom quartile, signaling weaker earnings momentum.

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

Growth Metrics

Growth metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
Revenue Growth (YoY)20.88%15.12%
Revenue Growth (3Y CAGR)22.38%15.19%
EPS Growth (YoY)22.08%-44.59%
EPS Growth (3Y CAGR)73.46%8.53%

Financial Strength

Current Ratio (MRQ)

Synopsys (SNPS) at 1.34 keeps current ratio within its industry’s typical mid-range, while ServiceNow (NOW) at 0.72 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOW.

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

SNPS

Software & Services industry group

1.34

Max
5.11
Q3
2.77
Median
1.67
SNPS
1.34
Q1
1.01
Min
0.03
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both ServiceNow (NOW) at 0.64 and Synopsys (SNPS) at 0.35 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

SNPS

Software & Services industry group

0.35

Max
2.52
Q3
1.13
Median
0.40
SNPS
0.35
Q1
0.07
Min
0.00
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ServiceNow (NOW) vs. Synopsys (SNPS): 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 Synopsys (SNPS)
MetricNOWSNPS
Current Ratio (MRQ)0.721.34
Debt / Equity (MRQ)0.640.35
Net Debt / EBITDA1.183.49

Dividends

Dividend Yield (TTM)

Neither ServiceNow (NOW) nor Synopsys (SNPS) 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%

SNPS

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Neither ServiceNow (NOW) nor Synopsys (SNPS) 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%

SNPS

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
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 Synopsys (SNPS) at 79.59 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

SNPS

Software & Services industry group

79.59

Max
112.94
SNPS
79.59
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

ServiceNow (NOW) at 6.86 is priced about in line with its industry on P/S ratio, while Synopsys (SNPS) at 9.17 sits in the pricier quartile — SNPS 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

SNPS

Software & Services industry group

9.17

Max
17.91
SNPS
9.17
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both ServiceNow (NOW) at 8.08 and Synopsys (SNPS) at 2.77 are valued close to their industries’ norm against book — neither stands out from peers.

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

SNPS

Software & Services industry group

2.77

Max
16.63
Q3
8.50
Median
4.30
SNPS
2.77
Q1
1.92
Min
-3.90
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ServiceNow (NOW) vs. Synopsys (SNPS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for ServiceNow (NOW) and Synopsys (SNPS)
MetricNOWSNPS
P/E Ratio (TTM)73.3679.59
P/S Ratio (TTM)6.869.17
P/B Ratio (MRQ)8.082.77
Free Cash Flow Yield (TTM)5.44%3.97%