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NOW vs. TWLO: ServiceNow vs. Twilio Stock Comparison

How do ServiceNow (NOW) and Twilio (TWLO) 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 Twilio (TWLO) both fall under the Software & Services industry group, but NOW is classified in Software while TWLO is classified in IT Services.

Company profile comparison for ServiceNow (NOW) and Twilio (TWLO)
Profile ItemNOWTWLO
NameServiceNow Inc.Twilio Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustrySystems SoftwareInternet Services & Infrastructure
Market Capitalization105.84 billion USD31.26 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 29, 2012June 23, 2016
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

NOW
TWLO
GSPC
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ServiceNow (NOW) vs. Twilio (TWLO), 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 Twilio (TWLO). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
Total Return (1Y)-39.72%61.15%
Total Return (3Y, Annualized)-5.71%54.31%
Total Return (5Y, Annualized)-5.55%-7.91%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
Volatility (1Y, Annualized)64.49%63.75%
Beta (5Y)0.981.48
Max Drawdown (5Y)-64.54%-86.25%
Avg. Volume (3M)15.74M3.05M

Risk-Adjusted Performance

Risk-Return Positioning

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NOW and TWLO 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 Twilio (TWLO)
MetricNOWTWLO
Sharpe Ratio (1Y)-0.680.89
Sortino Ratio (1Y)-0.891.49

Profitability

ROE (TTM)

Both ServiceNow (NOW) at 11.85% and Twilio (TWLO) at 14.92% 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%

TWLO

Software & Services industry group

14.92%

Max
53.85%
Q3
17.90%
TWLO
14.92%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Twilio (TWLO) at 21.82% retains a top-quartile share of revenue as profit, ahead of ServiceNow (NOW) at 9.36%, which keeps about the industry-typical share.

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%

TWLO

Software & Services industry group

21.82%

Max
41.17%
TWLO
21.82%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both ServiceNow (NOW) at 17.39% and Twilio (TWLO) at 9.53% 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%

TWLO

Software & Services industry group

9.53%

Max
46.89%
Q3
17.64%
TWLO
9.53%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
ROE (TTM)11.85%14.92%
ROA (TTM)4.59%2.69%
Net Margin (TTM)9.36%21.82%
Operating Margin (TTM)17.39%9.53%
Gross Margin (TTM)73.08%48.61%

Growth

Revenue Growth

Both ServiceNow (NOW) at 20.88% and Twilio (TWLO) at 13.66% 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. Twilio (TWLO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: ServiceNow (NOW) reports EPS growth of 22.08%, ranked against its industry; Twilio (TWLO) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
Revenue Growth (YoY)20.88%13.66%
Revenue Growth (3Y CAGR)22.38%9.82%
EPS Growth (YoY)22.08%--
EPS Growth (3Y CAGR)73.46%--

Financial Strength

Current Ratio (MRQ)

Twilio (TWLO) at 4.47 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

TWLO

Software & Services industry group

4.47

Max
5.11
TWLO
4.47
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both ServiceNow (NOW) at 0.64 and Twilio (TWLO) at 0.12 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

TWLO

Software & Services industry group

0.12

Max
2.52
Q3
1.13
Median
0.40
TWLO
0.12
Q1
0.07
Min
0.00
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ServiceNow (NOW) vs. Twilio (TWLO): 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 Twilio (TWLO)
MetricNOWTWLO
Current Ratio (MRQ)0.724.47
Debt / Equity (MRQ)0.640.12
Net Debt / EBITDA1.18-3.13

Dividends

Dividend Yield (TTM)

Neither ServiceNow (NOW) nor Twilio (TWLO) 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%

TWLO

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Neither ServiceNow (NOW) nor Twilio (TWLO) 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%

TWLO

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Twilio (TWLO) at 25.38 is near its industry’s usual P/E ratio, while ServiceNow (NOW) at 73.36 sits in the richer quartile — NOW needs stronger growth or earnings quality to justify the premium.

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

TWLO

Software & Services industry group

25.38

Max
112.94
Q3
60.32
Median
32.91
TWLO
25.38
Q1
18.77
Min
6.69
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both ServiceNow (NOW) at 6.86 and Twilio (TWLO) at 5.36 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

TWLO

Software & Services industry group

5.36

Max
17.91
Q3
8.78
TWLO
5.36
Median
4.25
Q1
2.23
Min
0.02
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ServiceNow (NOW) vs. Twilio (TWLO): 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 Twilio (TWLO) at 3.41 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

TWLO

Software & Services industry group

3.41

Max
16.63
Q3
8.50
Median
4.30
TWLO
3.41
Q1
1.92
Min
-3.90
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ServiceNow (NOW) vs. Twilio (TWLO): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for ServiceNow (NOW) and Twilio (TWLO)
MetricNOWTWLO
P/E Ratio (TTM)73.3625.38
P/S Ratio (TTM)6.865.36
P/B Ratio (MRQ)8.083.41
Free Cash Flow Yield (TTM)5.44%3.45%