NOW vs PANW: Which Is the Better Buy?
Side-by-side comparison of ServiceNow, Inc. and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-18.
ServiceNow, Inc. · Technology
$103.24
+45.0% upside to fair value
Grade B
High Quality
VS
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
NOW has more upside to fair value
(+45.0%).
NOW trades at a lower forward P/E
(61.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
NOW |
PANW |
| Current Price |
$103.24 |
$287.78 |
| Fair Value Estimate |
$149.70 |
$296.19 |
| Upside to Fair Value |
+45.0%
|
+2.9%
|
| Market Cap |
$106.5B |
$196.1B |
| Forward P/E |
61.1x
|
248.9x
|
| EV / EBITDA |
32.9x
|
85.9x
|
| Price / Sales |
7.6x
|
18.5x
|
| Price / FCF |
23.0x
|
45.7x
|
| Revenue Growth YoY |
+22.1%
|
+31.1%
|
| Gross Margin |
76.6%
|
71.9%
|
| Operating Margin |
13.4%
|
9.6%
|
| Return on Equity |
15.0%
|
6.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.35%
|
2.19%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
ServiceNow, Inc. operates in the technology sector specializing in software applications, delivering high-quality enterprise cloud solutions with a durable competitive moat evidenced by a 15% return on equity and strong gross margins of 76.6%. The company is currently in an investing growth phase with 22.1% revenue growth in the most recent quarter, although earnings growth is modest at 2.0%. Des…
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
Accumulation Zones
| Metric |
NOW |
PANW |
| Zone Low |
$112.27 |
$222.14 |
| Zone High |
$127.24 |
$251.76 |
| In Buy Zone? |
Yes
|
No
|