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

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

Company Profile

SymbolNOWTTD
Company NameServiceNow, Inc.The Trade Desk, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareMedia
Market Capitalization184.02 billion USD26.01 billion USD
ExchangeNYSENasdaqGM
Listing DateJune 29, 2012September 21, 2016
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolNOWTTD
5-Day Price Return-0.59%-3.18%
13-Week Price Return-12.61%-28.56%
26-Week Price Return-11.10%-33.52%
52-Week Price Return5.67%-49.02%
Month-to-Date Return-5.98%-38.82%
Year-to-Date Return-16.35%-54.74%
10-Day Avg. Volume2.02M19.03M
3-Month Avg. Volume1.58M12.61M
3-Month Volatility26.84%86.91%
Beta0.931.44

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.

TTD

15.19%

Media Industry

Max
34.77%
Q3
16.01%
Median
10.70%
Q1
2.80%
Min
-2.36%

TTD’s Return on Equity of 15.19% is on par with the norm for the Media industry, indicating its profitability relative to shareholder equity is typical for the sector.

NOW vs. TTD: A comparison of their Return on Equity (TTM) against their respective Software and Media 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.

TTD

15.57%

Media Industry

Max
16.04%
Q3
10.15%
Median
5.18%
Q1
2.39%
Min
-3.66%

A Net Profit Margin of 15.57% places TTD in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.

NOW vs. TTD: A comparison of their Net Profit Margin (TTM) against their respective Software and Media 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.

TTD

17.73%

Media Industry

Max
24.65%
Q3
13.68%
Median
8.96%
Q1
4.53%
Min
-8.09%

An Operating Profit Margin of 17.73% places TTD in the upper quartile for the Media industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolNOWTTD
Return on Equity (TTM)16.62%15.19%
Return on Assets (TTM)8.12%7.17%
Net Profit Margin (TTM)13.78%15.57%
Operating Profit Margin (TTM)13.28%17.73%
Gross Profit Margin (TTM)78.52%79.41%

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.

TTD

1.71

Media Industry

Max
2.97
Q3
1.79
Median
1.39
Q1
0.92
Min
0.24

TTD’s Current Ratio of 1.71 aligns with the median group of the Media industry, indicating that its short-term liquidity is in line with its sector peers.

NOW vs. TTD: A comparison of their Current Ratio (MRQ) against their respective Software and Media 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.

TTD

0.03

Media Industry

Max
2.02
Q3
1.06
Median
0.58
Q1
0.31
Min
0.00

Falling into the lower quartile for the Media industry, TTD’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NOW vs. TTD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Media 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.

TTD

44.57

Media Industry

Max
44.57
Q3
23.07
Median
4.52
Q1
2.14
Min
-10.82

TTD’s Interest Coverage Ratio of 44.57 is in the upper quartile for the Media industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

SymbolNOWTTD
Current Ratio (MRQ)1.091.71
Quick Ratio (MRQ)0.991.68
Debt-to-Equity Ratio (MRQ)0.140.03
Interest Coverage Ratio (TTM)32.1344.57

Growth

Revenue Growth

NOW vs. TTD: 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. TTD: 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.

TTD

0.00%

Media Industry

Max
7.76%
Q3
4.16%
Median
1.67%
Q1
0.00%
Min
0.00%

TTD 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. TTD: A comparison of their Dividend Yield (TTM) against their respective Software and Media 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.

TTD

0.00%

Media Industry

Max
165.03%
Q3
96.17%
Median
45.64%
Q1
14.80%
Min
0.00%

TTD 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. TTD: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Media industry benchmarks.

Dividend at a Glance

SymbolNOWTTD
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.

TTD

61.22

Media Industry

Max
49.10
Q3
35.07
Median
17.34
Q1
10.39
Min
5.81

At 61.22, TTD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Media 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. TTD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Media 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.

TTD

9.53

Media Industry

Max
3.23
Q3
1.85
Median
1.05
Q1
0.78
Min
0.22

With a P/S Ratio of 9.53, TTD trades at a valuation that eclipses even the highest in the Media industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NOW vs. TTD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Media 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.

TTD

13.12

Media Industry

Max
4.30
Q3
2.57
Median
1.83
Q1
1.19
Min
0.51

At 13.12, TTD’s P/B Ratio is at an extreme premium to the Media 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. TTD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Media industry benchmarks.

Valuation at a Glance

SymbolNOWTTD
Price-to-Earnings Ratio (TTM)111.0561.22
Price-to-Sales Ratio (TTM)15.309.53
Price-to-Book Ratio (MRQ)19.4813.12
Price-to-Free Cash Flow Ratio (TTM)48.4834.25