Intuit Inc. (INTU) vs ServiceNow, Inc. (NOW)

Intuit Inc. and ServiceNow, Inc. are both Software Application companies. ServiceNow, Inc. is the larger, with a market value of $113.8B against $88.5B — 1.3× the size. Intuit Inc. trades at the lower P/E: 20.7× against 65.1×. ServiceNow, Inc. grew revenue faster over the last twelve months: 22.2% against 13.9%. Intuit Inc. has the higher net margin (21.3% vs 11.3%) and the higher return on invested capital (20.2% vs 6.83%). Across the 22 metrics below, Intuit Inc. leads on 17 and ServiceNow, Inc. on 5.

Valuation

Metric INTU NOW Software Application median
P/E 20.66 65.14 26.76
P/S 4.39 7.36 2.99
P/B 4.96 8.66 2.59
Price to free cash flow 10.94 23.90 18.02
EV/EBITDA 13.94 32.55 16.06
EV/Sales 4.37 7.55 2.92
Earnings yield 4.84% 1.54% 0.00%
Free cash flow yield 9.14% 4.18% 2.00%

Profitability

Metric INTU NOW Software Application median
Gross margin 80.17% 74.77% 67.03%
Operating margin 27.43% 11.40% 0.00%
Net margin 21.29% 11.34% 0.00%
Free cash flow margin 40.18% 31.09% 5.71%
Return on equity 23.60% 14.24% 0.00%
Return on assets 12.38% 6.22% 0.00%
Return on invested capital 20.19% 6.83% 0.00%

Growth

Metric INTU NOW Software Application median
Revenue growth (TTM) 13.90% 22.19% 12.43%
EPS growth (last fiscal year) 20.41% 22.08% 31.92%
Revenue growth, 5-year CAGR 17.36% 24.06% 14.34%
Net income growth, 5-year CAGR 17.23% 71.16% 0.00%

Health

Metric INTU NOW Software Application median
Debt to equity 0.34 0.60 0.03
Current ratio 1.51 0.70 1.56
Net debt to EBITDA (0.12) (1.51) 0.08

Dividend

Metric INTU NOW Software Application median
Dividend yield 1.46% — 0.93%
Payout ratio 0.30 — 0.29

Size

Metric INTU NOW Software Application median
Market cap 88.51b 113.84b 423.97m

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