NOW vs. ZM: ServiceNow vs. Zoom Communications Stock Comparison

November 11, 2026

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

Company profile comparison for ServiceNow (NOW) and Zoom Communications (ZM)
Profile Item	NOW	ZM
Name	ServiceNow Inc.	Zoom Communications, Inc. Class A Common Stock
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	Software
GICS Sub-Industry	Systems Software	Application Software
Market Capitalization	105.84 billion USD	26.23 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	June 29, 2012	April 18, 2019
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

NOW

GSPC

ServiceNow (NOW) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
Total Return (1Y)	-39.72%	12.58%
Total Return (3Y, Annualized)	-5.71%	14.89%
Total Return (5Y, Annualized)	-5.55%	-18.67%

Risk Profile

Drawdown History

NOW

GSPC

ServiceNow (NOW) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
Volatility (1Y, Annualized)	64.49%	45.03%
Beta (5Y)	0.98	0.99
Max Drawdown (5Y)	-64.54%	-79.08%
Avg. Volume (3M)	15.74M	2.88M

Risk-Adjusted Performance

Risk-Return Positioning

NOW and ZM 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 Zoom Communications (ZM)
Metric	NOW	ZM
Sharpe Ratio (1Y)	-0.68	0.18
Sortino Ratio (1Y)	-0.89	0.28

Profitability

ROE (TTM)

Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while ServiceNow (NOW) at 11.85% is closer to the peer norm — stronger capital efficiency for ZM.

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%

ZM

Software & Services industry group

32.14%

Max: 53.85%
ZM: 32.14%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while ServiceNow (NOW) at 9.36% keeps roughly the typical share for its industry.

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%

ZM

Software & Services industry group

65.19%

ZM: 65.19%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Zoom Communications (ZM) at 24.61% 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%

ZM

Software & Services industry group

24.61%

Max: 46.89%
ZM: 24.61%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
ROE (TTM)	11.85%	32.14%
ROA (TTM)	4.59%	6.11%
Net Margin (TTM)	9.36%	65.19%
Operating Margin (TTM)	17.39%	24.61%
Gross Margin (TTM)	73.08%	77.66%

Growth

Revenue Growth

ServiceNow (NOW) at 20.88% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while ServiceNow (NOW) at 22.08% is closer to the peer norm — faster per-share earnings growth for ZM.

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
Revenue Growth (YoY)	20.88%	4.36%
Revenue Growth (3Y CAGR)	22.38%	3.49%
EPS Growth (YoY)	22.08%	92.52%
EPS Growth (3Y CAGR)	73.46%	162.93%

Financial Strength

Current Ratio (MRQ)

Zoom Communications (ZM) at 3.83 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

ZM

Software & Services industry group

3.83

Max: 5.11
ZM: 3.83
Q3: 2.77
Median: 1.67
Q1: 1.01
Min: 0.03

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Zoom Communications (ZM) 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

ZM

Software & Services industry group

0.01

Max: 2.52
Q3: 1.13
Median: 0.40
Q1: 0.07
ZM: 0.01
Min: 0.00

ServiceNow (NOW) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM)
Metric	NOW	ZM
Current Ratio (MRQ)	0.72	3.83
Debt / Equity (MRQ)	0.64	0.01
Net Debt / EBITDA	1.18	-5.39

Dividends

Dividend Yield (TTM)

Neither ServiceNow (NOW) nor Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

ZM: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither ServiceNow (NOW) nor Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

ZM: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

P/E Ratio (TTM)

Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while ServiceNow (NOW) at 73.36 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

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

ZM

Software & Services industry group

8.34

Max: 112.94
Q3: 60.32
Median: 32.91
Q1: 18.77
ZM: 8.34
Min: 6.69

ServiceNow (NOW) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM) at 5.25 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

ZM

Software & Services industry group

5.25

Max: 17.91
Q3: 8.78
ZM: 5.25
Median: 4.25
Q1: 2.23
Min: 0.02

ServiceNow (NOW) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM) at 2.32 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

ZM

Software & Services industry group

2.32

Max: 16.63
Q3: 8.50
Median: 4.30
ZM: 2.32
Q1: 1.92
Min: -3.90

ServiceNow (NOW) vs. Zoom Communications (ZM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for ServiceNow (NOW) and Zoom Communications (ZM)
Metric	NOW	ZM
P/E Ratio (TTM)	73.36	8.34
P/S Ratio (TTM)	6.86	5.25
P/B Ratio (MRQ)	8.08	2.32
Free Cash Flow Yield (TTM)	5.44%	7.53%