ServiceNow, Inc. (NOW) vs SAP SE (SAP)

ServiceNow, Inc. and SAP SE are both Software Application companies. SAP SE is the larger, with a market value of $242.9B against $142.1B — 1.7× the size. SAP SE trades at the lower P/E: 26.4× against 84.0×. ServiceNow, Inc. grew revenue faster over the last twelve months: 22.2% against 14.1%. SAP SE has the higher net margin (20.4% vs 11.3%) and the higher return on invested capital (14.5% vs 6.83%). Across the 22 metrics below, SAP SE leads on 16 and ServiceNow, Inc. on 6.

Valuation

Metric NOW SAP Software Application median
P/E 84.03 26.37 24.79
P/S 9.49 5.45 2.67
P/B 11.18 4.62 3.01
Price to free cash flow 30.83 23.90 16.59
EV/EBITDA 41.74 18.08 14.40
EV/Sales 9.69 5.42 2.62
Earnings yield 1.19% 3.79% 0.00%
Free cash flow yield 3.24% 4.18% 1.91%

Profitability

Metric NOW SAP Software Application median
Gross margin 74.77% 72.77% 67.03%
Operating margin 11.40% 26.74% 0.00%
Net margin 11.34% 20.41% 0.00%
Free cash flow margin 31.09% 22.81% 4.32%
Return on equity 14.24% 18.26% 0.00%
Return on assets 6.22% 10.99% 0.00%
Return on invested capital 6.83% 14.51% 0.00%

Growth

Metric NOW SAP Software Application median
Revenue growth (TTM) 22.19% 14.06% 12.40%
EPS growth (last fiscal year) 22.08% 143.45% —
Revenue growth, 5-year CAGR 24.06% 5.92% 13.72%
Net income growth, 5-year CAGR 71.16% 6.63% 0.00%

Health

Metric NOW SAP Software Application median
Debt to equity 0.60 0.23 0.02
Current ratio 0.70 1.15 1.55
Net debt to EBITDA (1.51) (0.16) 0.06

Dividend

Metric NOW SAP Software Application median
Dividend yield — 1.28% 1.25%
Payout ratio 0.00 1.39 0.00

Size

Metric NOW SAP Software Application median
Market cap 142.09b 242.91b 396.11m

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