NOW vs RTX: Which Is the Better Buy?
Side-by-side comparison of ServiceNow, Inc. and RTX Corporation — 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
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
NOW has more upside to fair value
(+45.0%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
NOW |
RTX |
| Current Price |
$103.24 |
$185.60 |
| Fair Value Estimate |
$149.70 |
$138.81 |
| Upside to Fair Value |
+45.0%
|
-25.2%
|
| Market Cap |
$106.5B |
$249.9B |
| Forward P/E |
61.1x
|
34.3x
|
| EV / EBITDA |
32.9x
|
18.3x
|
| Price / Sales |
7.6x
|
2.8x
|
| Price / FCF |
23.0x
|
29.9x
|
| Revenue Growth YoY |
+22.1%
|
+8.7%
|
| Gross Margin |
76.6%
|
20.2%
|
| Operating Margin |
13.4%
|
10.9%
|
| Return on Equity |
15.0%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.35%
|
3.34%
|
| Analyst Consensus |
Strong Buy
|
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…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
NOW |
RTX |
| Zone Low |
$112.27 |
$104.11 |
| Zone High |
$127.24 |
$117.99 |
| In Buy Zone? |
Yes
|
No
|