Comprehensive Stock Comparison
Compare ServiceNow, Inc. (NOW) vs SAP SE (SAP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NOW | 20.9% revenue growth vs SAP's 3.4% |
| Value | NOW | Lower P/E (25.8x vs 27.8x), PEG 0.37 vs 4.20 |
| Quality / Margins | SAP | 19.9% net margin vs NOW's 13.2% |
| Stability / Safety | SAP | Beta 0.86 vs NOW's 1.52, lower leverage |
| Dividends | SAP | 1.3% yield; 2-year raise streak; NOW pays no meaningful dividend |
| Momentum (1Y) | SAP | -25.8% vs NOW's -88.4% |
| Efficiency (ROA) | SAP | 10.4% ROA vs NOW's 6.7%, ROIC 16.1% vs 12.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
ServiceNow is a leading enterprise cloud platform that automates digital workflows across IT, customer service, HR, and security operations. It generates revenue primarily through subscription fees for its Now platform — with IT service management being its largest segment — and professional services. The company's competitive moat lies in its unified workflow automation platform that creates strong network effects and high switching costs as customers expand across departments.
SAP is a global enterprise software company that provides business applications, technology platforms, and cloud services for organizations worldwide. It generates revenue primarily through software licenses and cloud subscriptions — with cloud services now representing over 40% of total revenue — along with consulting and support services. The company's key advantage is its deep integration across business functions — from finance to supply chain to HR — creating switching costs and network effects within its large enterprise customer base.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SAP leads in 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
SAP is the larger business by revenue, generating $36.7B annually — 2.8x NOW's $13.3B. SAP is the more profitable business, keeping 19.9% of every revenue dollar as net income compared to NOW's 13.2%. On growth, NOW holds the edge at +20.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| RevenueTrailing 12 months | $13.3B | $36.7B |
| EBITDAEarnings before interest/tax | $2.6B | $11.5B |
| Net IncomeAfter-tax profit | $1.7B | $7.3B |
| Free Cash FlowCash after capex | $4.6B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +77.5% | +73.3% |
| Operating MarginEBIT ÷ Revenue | +13.7% | +27.0% |
| Net MarginNet income ÷ Revenue | +13.2% | +19.9% |
| FCF MarginFCF ÷ Revenue | +34.5% | +22.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +20.7% | +2.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.7% | +14.7% |
Valuation Metrics
At 28.5x trailing earnings, SAP trades at a 56% valuation discount to NOW's 64.7x P/E. Adjusting for growth (PEG ratio), NOW offers better value at 0.93x vs SAP's 4.32x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| Market CapShares × price | $113.1B | $234.7B |
| Enterprise ValueMkt cap + debt − cash | $112.6B | $234.5B |
| Trailing P/EPrice ÷ TTM EPS | 64.68x | 28.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.81x | 27.77x |
| PEG RatioP/E ÷ EPS growth rate | 0.93x | 4.32x |
| EV / EBITDAEnterprise value multiple | 43.94x | 17.84x |
| Price / SalesMarket cap ÷ Revenue | 8.52x | 5.63x |
| Price / BookPrice ÷ Book value/share | 8.72x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 24.71x | 25.07x |
Profitability & Efficiency
SAP delivers a 16.2% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $13 for NOW. SAP carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to NOW's 0.25x. On the Piotroski fundamental quality scale (0–9), SAP scores 9/9 vs NOW's 3/9, reflecting strong financial health.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| ROE (TTM)Return on equity | +13.5% | +16.2% |
| ROA (TTM)Return on assets | +6.7% | +10.4% |
| ROICReturn on invested capital | +12.4% | +16.1% |
| ROCEReturn on capital employed | +13.2% | +18.3% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 9 |
| Debt / EquityFinancial leverage | 0.25x | 0.18x |
| Net DebtTotal debt minus cash | -$523M | -$149M |
| Cash & Equiv.Liquid assets | $3.7B | $8.2B |
| Total DebtShort + long-term debt | $3.2B | $8.1B |
| Interest CoverageEBIT ÷ Interest expense | 126.61x | 8.94x |
Total Returns (with DRIP)
A $10,000 investment in SAP five years ago would be worth $17,166 today (with dividends reinvested), compared to $1,941 for NOW. Over the past 12 months, SAP leads with a -25.8% total return vs NOW's -88.4%. The 3-year compound annual growth rate (CAGR) favors SAP at 22.4% vs NOW's -37.0% — a key indicator of consistent wealth creation.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| YTD ReturnYear-to-date | -26.7% | -14.9% |
| 1-Year ReturnPast 12 months | -88.4% | -25.8% |
| 3-Year ReturnCumulative with dividends | -75.0% | +83.4% |
| 5-Year ReturnCumulative with dividends | -80.6% | +71.7% |
| 10-Year ReturnCumulative with dividends | +96.4% | +193.8% |
| CAGR (3Y)Annualised 3-year return | -37.0% | +22.4% |
Risk & Volatility
SAP is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than NOW's 1.52 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAP currently trades 64.3% from its 52-week high vs NOW's 10.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.52x | 0.86x |
| 52-Week HighHighest price in past year | $1057.39 | $313.28 |
| 52-Week LowLowest price in past year | $98.00 | $189.22 |
| % of 52W HighCurrent price vs 52-week peak | +10.2% | +64.3% |
| RSI (14)Momentum oscillator 0–100 | 30.9 | 45.3 |
| Avg Volume (50D)Average daily shares traded | 15.0M | 2.4M |
Analyst Outlook
Wall Street rates NOW as "Buy" and SAP as "Buy". Consensus price targets imply 106.1% upside for SAP (target: $415) vs 81.7% for NOW (target: $196). SAP is the only dividend payer here at 1.31% yield — a key consideration for income-focused portfolios.
| Metric | NOWServiceNow, Inc. | SAPSAP SE |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $196.29 | $415.33 |
| # AnalystsCovering analysts | 67 | 43 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | +0.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| ServiceNow, Inc. (NOW) | 100 | 34.26 | -65.7% |
| SAP SE (SAP) | 100 | 163.78 | +63.8% |
SAP SE (SAP) returned +72% over 5 years vs ServiceNow, Inc. (NOW)'s -81%. A $10,000 investment in SAP 5 years ago would be worth $17,166 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ServiceNow, Inc. (NOW) | $1.4B | $13.3B | +854.9% |
| SAP SE (SAP) | $22.1B | $35.3B | +60.2% |
ServiceNow, Inc.'s revenue grew from $1.4B (2016) to $13.3B (2025) — a 28.5% CAGR. SAP SE's revenue grew from $22.1B (2016) to $35.3B (2025) — a 5.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ServiceNow, Inc. (NOW) | -32.5% | 13.2% | +140.5% |
| SAP SE (SAP) | 16.5% | 19.9% | +20.6% |
ServiceNow, Inc.'s net margin went from -32% (2016) to 13% (2025). SAP SE's net margin went from 17% (2016) to 20% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| ServiceNow, Inc. (NOW) | 443.9 | 91.7 | -79.3% |
| SAP SE (SAP) | 33.5 | 40.6 | +21.2% |
ServiceNow, Inc. has traded in a 92x–444x P/E range over 3 years; current trailing P/E is ~65x. SAP SE has traded in a 29x–93x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ServiceNow, Inc. (NOW) | -0.55 | 1.67 | +403.6% |
| SAP SE (SAP) | 3.03 | 5.99 | +97.7% |
ServiceNow, Inc.'s EPS grew from $-0.55 (2016) to $1.67 (2025). SAP SE's EPS grew from $3.03 (2016) to $5.99 (2025) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
ServiceNow, Inc. generated $5B FCF in 2025 (+155% vs 2021). SAP SE generated $8B FCF in 2025 (+44% vs 2021).
NOW vs SAP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NOW or SAP a better buy right now?
SAP SE (SAP) offers the better valuation at 28.5x trailing P/E (27.8x forward), making it the more compelling value choice. Analysts rate ServiceNow, Inc. (NOW) a "Buy" — based on 67 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NOW or SAP?
On trailing P/E, SAP SE (SAP) is the cheapest at 28.5x versus ServiceNow, Inc. at 64.7x. On forward P/E, ServiceNow, Inc. is actually cheaper at 25.8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ServiceNow, Inc. wins at 0.37x versus SAP SE's 4.20x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — NOW or SAP?
Over the past 5 years, SAP SE (SAP) delivered a total return of +71.7%, compared to -80.6% for ServiceNow, Inc. (NOW). A $10,000 investment in SAP five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SAP returned +193.8% versus NOW's +96.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NOW or SAP?
By beta (market sensitivity over 5 years), SAP SE (SAP) is the lower-risk stock at 0.86β versus ServiceNow, Inc.'s 1.52β — meaning NOW is approximately 78% more volatile than SAP relative to the S&P 500. On balance sheet safety, SAP SE (SAP) carries a lower debt/equity ratio of 18% versus 25% for ServiceNow, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — NOW or SAP?
SAP SE (SAP) is the more profitable company, earning 19.9% net margin versus 13.2% for ServiceNow, Inc. — meaning it keeps 19.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SAP leads at 28.0% versus 13.7% for NOW. At the gross margin level — before operating expenses — NOW leads at 77.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is NOW or SAP more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, ServiceNow, Inc. (NOW) is the more undervalued stock at a PEG of 0.37x versus SAP SE's 4.20x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, ServiceNow, Inc. (NOW) trades at 25.8x forward P/E versus 27.8x for SAP SE — 2.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAP: 106.1% to $415.33.
07Which pays a better dividend — NOW or SAP?
In this comparison, SAP (1.3% yield) pays a dividend. NOW does not pay a meaningful dividend and should not be held primarily for income.
08Is NOW or SAP better for a retirement portfolio?
For long-horizon retirement investors, SAP SE (SAP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.86), 1.3% yield, +193.8% 10Y return). ServiceNow, Inc. (NOW) carries a higher beta of 1.52 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SAP: +193.8%, NOW: +96.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NOW and SAP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. SAP pays a dividend while NOW does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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