In today’s dynamic market, I’m comparing two innovative companies that are making waves in their respective industries: ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP). ServiceNow excels in enterprise cloud computing and workflow automation, while Roper Technologies focuses on engineered products and software solutions across various sectors. Both companies share a commitment to innovation and leverage technology to enhance operational efficiency. Join me as I analyze which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
ServiceNow, Inc. Overview
ServiceNow, Inc. is a leader in enterprise cloud computing, specializing in workflow automation and IT service management. Founded in 2004 and headquartered in Santa Clara, California, the company has built a robust platform that integrates artificial intelligence, machine learning, and robotic process automation to streamline operations across various sectors, including healthcare, finance, and telecommunications. With a market capitalization of approximately $169B, ServiceNow’s offerings cater to a diverse clientele, helping organizations manage workflows and enhance operational efficiency. Under the leadership of CEO William R. McDermott, the company has positioned itself as a critical player in the software application industry, emphasizing innovation and customer-centric solutions.
Roper Technologies, Inc. Overview
Roper Technologies, Inc. is a diversified technology company that designs and develops engineered products and software solutions. Established in 1981 and based in Sarasota, Florida, Roper provides a wide array of services, including cloud-based financial analytics, healthcare software, and industrial automation solutions. With a market cap of around $48B, the company operates in multiple sectors, such as industrial machinery and healthcare, leveraging advanced technology to deliver precision instruments and data analytics. CEO Laurence Neil Hunn leads the firm toward sustained growth, focusing on innovation and strategic acquisitions to enhance its portfolio.
Key similarities and differences
Both ServiceNow and Roper Technologies operate in technology-driven sectors, offering software solutions to enhance operational efficiency. However, ServiceNow focuses primarily on enterprise cloud services and IT management, while Roper provides a broader range of engineered products and specialized software across diverse industries. This distinction highlights ServiceNow’s emphasis on service-oriented solutions compared to Roper’s industrial and engineering applications.
Income Statement Comparison
In this section, I present a comparative analysis of the income statements for ServiceNow, Inc. and Roper Technologies, Inc. for the most recent fiscal year.
| Metric | ServiceNow, Inc. | Roper Technologies, Inc. |
|---|---|---|
| Market Cap | 169B | 48B |
| Revenue | 10.98B | 7.04B |
| EBITDA | 2.23B | 3.04B |
| EBIT | 1.76B | 2.23B |
| Net Income | 1.43B | 1.55B |
| EPS | 6.92 | 14.47 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ServiceNow experienced a robust revenue growth of approximately 22% from the previous year, while Roper Technologies also saw a notable revenue increase of around 14%. However, despite ServiceNow’s higher revenue, Roper’s EBITDA margin was more favorable, reflecting operational efficiency. Roper’s net income of 1.55B, compared to ServiceNow’s 1.43B, indicates slightly better profitability. Overall, both companies demonstrate strong financial health, but investors should consider the differing operational efficiencies and market strategies when evaluating these stocks for their portfolios.
Financial Ratios Comparison
The following table presents a comparison of the most recent financial metrics for ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP).
| Metric | NOW | ROP |
|---|---|---|
| ROE | 15% | 8% |
| ROIC | 9% | 5.5% |
| P/E | 153 | 36 |
| P/B | 22.7 | 3.3 |
| Current Ratio | 1.10 | 0.40 |
| Quick Ratio | 1.10 | 0.37 |
| D/E | 0.24 | 0.41 |
| Debt-to-Assets | 11% | 23% |
| Interest Coverage | 59 | 10 |
| Asset Turnover | 0.54 | 0.22 |
| Fixed Asset Turnover | 4.47 | 47.02 |
| Payout Ratio | 0% | 21% |
| Dividend Yield | 0% | 0.58% |
Interpretation of Financial Ratios
The financial ratios reveal distinct strengths and weaknesses for both companies. ServiceNow showcases a robust ROE and ROIC, indicating effective use of equity and capital. In contrast, ROP’s higher fixed asset turnover suggests efficient asset use despite lower profitability ratios. However, ROP’s current and quick ratios raise concerns about liquidity. Overall, ServiceNow appears stronger financially, yet ROP’s asset management merits attention. Investors should weigh these factors against their risk appetite.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, focusing instead on reinvesting in growth and R&D, which can be beneficial for long-term value creation. The company also engages in share buybacks, indicating a commitment to returning value to shareholders.
In contrast, Roper Technologies, Inc. (ROP) has a dividend payout ratio of approximately 21%, yielding around 0.58%. This approach, along with share buybacks, suggests a balanced strategy for returning capital while supporting growth. Both companies exhibit strategies that align with sustainable long-term shareholder value creation.
Strategic Positioning
ServiceNow, Inc. (NOW) commands a robust position in the enterprise cloud computing sector, with a market cap of $169B. Its innovative workflow automation solutions face competitive pressure from emerging tech firms but remain ahead due to its comprehensive service offerings. In contrast, Roper Technologies, Inc. (ROP) operates in the industrial machinery space with a market cap of $48B, where it leverages a diversified product portfolio. Both companies must navigate technological disruptions while maintaining their market shares amidst increasing competition.
Stock Comparison
In analyzing the weekly stock price movements for ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP) over the past year, we observe distinct trading dynamics, with NOW exhibiting a notable bullish trend while ROP presents a bearish outlook.
Trend Analysis
For ServiceNow, Inc. (NOW), the overall price change over the past year is +20.15%. This indicates a bullish trend, though the acceleration status shows deceleration. The stock reached a high of 1124.98 and a low of 656.93 during this period, with a standard deviation of 116.45, suggesting some volatility in its price movements. In the recent trend from September 14, 2025, to November 30, 2025, the price has decreased by -12.55%, with a standard deviation of 46.52, indicating a trend slope of -11.69.
Conversely, Roper Technologies, Inc. (ROP) has experienced an overall price change of -14.69% over the past year, marking a bearish trend. The highest price recorded was 588.38 and the lowest was 443.75, with a standard deviation of 30.17, reflecting some level of volatility. In the recent period from September 14, 2025, to November 30, 2025, ROP’s stock price has also declined by -12.94%, with a standard deviation of 28.09 and a trend slope of -7.36.
In summary, while NOW shows a long-term bullish trend with recent short-term volatility, ROP’s performance remains under negative pressure, warranting cautious consideration for investors.
Analyst Opinions
Recent analyst recommendations for ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP) indicate a positive outlook. Analysts have assigned a “B” rating to NOW, reflecting strengths in discounted cash flow and return on assets. Conversely, ROP received a “B+” rating, showcasing similar strengths but with slightly better overall metrics. Analysts suggest that both stocks are solid choices, leaning towards a consensus “buy” for 2025. Notable analysts contributing to these ratings emphasize the companies’ robust financial health and growth potential, making them appealing for investors seeking stability.
Stock Grades
Recent evaluations from reputable grading companies provide insights into the current market stance for ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP). Let’s explore the latest grades for these companies.
ServiceNow, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Overweight | 2025-10-30 |
| Canaccord Genuity | maintain | Buy | 2025-10-30 |
| TD Cowen | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| Barclays | maintain | Overweight | 2025-10-30 |
| Citigroup | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-14 |
| Morgan Stanley | upgrade | Overweight | 2025-09-24 |
| JMP Securities | maintain | Market Outperform | 2025-08-04 |
Roper Technologies, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | downgrade | Sector Perform | 2025-10-27 |
| Barclays | maintain | Underweight | 2025-10-27 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Raymond James | maintain | Strong Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Jefferies | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-17 |
| JP Morgan | downgrade | Underweight | 2025-10-15 |
| Barclays | maintain | Underweight | 2025-10-01 |
| Truist Securities | maintain | Buy | 2025-07-22 |
Overall, ServiceNow maintains a positive outlook with consistent grades of “Overweight” and “Buy” from multiple firms, indicating strong investor confidence. In contrast, Roper Technologies is experiencing some downgrades, particularly from RBC Capital, suggesting a shift in sentiment that investors should monitor closely.
Target Prices
The consensus target prices for ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP) indicate positive growth expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 860 | 1172.71 |
| Roper Technologies, Inc. | 650 | 506 | 574.2 |
For ServiceNow, analysts anticipate a target consensus of 1172.71, significantly above its current price of 812.41, indicating strong growth potential. Roper Technologies’ consensus target of 574.2 also suggests an upside from its current price of 446.22.
Strengths and Weaknesses
In this section, I will compare the strengths and weaknesses of ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP) based on recent data.
| Criterion | ServiceNow, Inc. (NOW) | Roper Technologies, Inc. (ROP) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (Net Margin: 12.97%) | Strong (Net Margin: 22.01%) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | High | Moderate |
| Debt level | Low (Debt/Equity: 0.24) | Moderate (Debt/Equity: 0.37) |
Key takeaways: ServiceNow excels in innovation and market share, while Roper showcases stronger profitability and diversification. Investors should weigh these factors against their risk tolerance when considering investments.
Risk Analysis
In the table below, I outline the significant risks associated with each company, which are essential to consider when making investment decisions.
| Metric | ServiceNow, Inc. | Roper Technologies, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | Low |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face market risks due to their reliance on global economic conditions. ServiceNow grapples with high geopolitical risks, particularly in regulatory environments, while Roper Technologies maintains a more stable outlook due to diversified operations.
Which one to choose?
In comparing ServiceNow, Inc. (NOW) and Roper Technologies, Inc. (ROP), both companies exhibit robust fundamentals, yet they differ significantly in market dynamics. ServiceNow shows a strong gross profit margin of 79.2% and a net profit margin of 12.9%, though its high price-to-earnings (P/E) ratio of 153.1 suggests it may be overvalued. Conversely, Roper has a lower P/E of 35.9 and a solid net profit margin of 22.0% but has recently experienced bearish price trends.
Analysts rate both companies with a “B,” but ROP holds a slightly better “B+” for its overall score. Investors seeking growth might find NOW appealing despite its high valuation, while those focused on stability and profitability may prefer ROP given its strong margins and lower valuation metrics.
However, both companies face industry-specific challenges, such as competition and valuation pressures.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of ServiceNow, Inc. and Roper Technologies, Inc. to enhance your investment decisions:
