NOW vs INTU

For growth investors, ServiceNow, Inc.

(NOW) is the stronger pick with 20. 9% revenue growth year-over-year, versus 15. 6% for Intuit Inc. (INTU). Intuit Inc. (INTU) offers the better valuation at 28. 4x trailing P/E (16. 7x forward), making it the more compelling value choice. Analysts rate ServiceNow, Inc. (NOW) a "Buy" — based on 68 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.

On trailing P/E, Intuit Inc.

(INTU) is the cheapest at 28. 4x versus ServiceNow, Inc. at 53. 3x. On forward P/E, Intuit Inc. is actually cheaper at 16. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ServiceNow, Inc. wins at 0. 31x versus Intuit Inc. 's 1. 15x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Intuit Inc.

(INTU) delivered a total return of +3. 1%, compared to -81. 7% for ServiceNow, Inc. (NOW). Over 10 years, the gap is even starker: INTU returned +311. 1% versus NOW's +32. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Intuit Inc.

(INTU) is the lower-risk stock at 0. 61β versus ServiceNow, Inc. 's 1. 46β — meaning NOW is approximately 140% more volatile than INTU relative to the S&P 500. On balance sheet safety, ServiceNow, Inc. (NOW) carries a lower debt/equity ratio of 25% versus 34% for Intuit Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ServiceNow, Inc.

(NOW) is pulling ahead at 20. 9% versus 15. 6% for Intuit Inc. (INTU). On earnings-per-share growth, the picture is similar: Intuit Inc. grew EPS 31. 1% year-over-year, compared to 21. 9% for ServiceNow, Inc.. Over a 3-year CAGR, NOW leads at 22. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Intuit Inc.

(INTU) is the more profitable company, earning 20. 5% net margin versus 13. 2% for ServiceNow, Inc. — meaning it keeps 20. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: INTU leads at 26. 1% versus 13. 7% for NOW. At the gross margin level — before operating expenses — INTU leads at 80. 8%, 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.

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. 31x versus Intuit Inc. 's 1. 15x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Intuit Inc. (INTU) trades at 16. 7x forward P/E versus 21. 4x for ServiceNow, Inc. — 4. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for INTU: 71. 6% to $666. 75.

In this comparison, INTU (1.

1% yield) pays a dividend. NOW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Intuit Inc.

(INTU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 61), 1. 1% yield, +311. 1% 10Y return). Both have compounded well over 10 years (INTU: +311. 1%, NOW: +32. 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

INTU 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.