In today’s rapidly evolving technology landscape, ServiceNow, Inc. (NOW) and UiPath Inc. (PATH) stand out as key players in the automation and software sectors. This analysis will compare these two companies, focusing on their innovative strategies and market overlap within the enterprise software industry. Both firms leverage cutting-edge technology to streamline operations, but their approaches differ significantly. Join me as we explore 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 solutions, specializing in workflow automation and service management across various industries. Founded in 2004, the company has established a strong market position through its Now platform, which integrates artificial intelligence, machine learning, and robotic process automation to enhance organizational efficiency. With a market cap of approximately $177B, ServiceNow serves a diverse clientele, including government, healthcare, and financial services, by providing tools for IT service management and risk compliance. CEO William R. McDermott’s strategic vision focuses on continual innovation to streamline enterprise operations and drive digital transformation.
UiPath Inc. Overview
Founded in 2005, UiPath Inc. has emerged as a prominent player in the robotic process automation (RPA) landscape. The company offers an end-to-end automation platform designed to optimize workflows by harnessing artificial intelligence and low-code development tools. With a market cap of around $10B, UiPath caters primarily to sectors such as banking, healthcare, and government, enabling organizations to automate repetitive tasks efficiently. Under the leadership of CEO Daniel Dines, the company emphasizes user-friendly solutions that allow clients to deploy and manage automation processes seamlessly.
Key similarities and differences
Both ServiceNow and UiPath operate in the technology sector, focusing on automation solutions to enhance business efficiency. While ServiceNow’s offerings are more centered around IT service management and enterprise-wide automation, UiPath specializes in RPA, providing tools for creating and managing automated workflows. Their approaches differ, with ServiceNow focusing on a broader range of enterprise services, whereas UiPath hones in on automating specific tasks within processes.
Income Statement Comparison
The following table provides a comparison of the most recent income statements for ServiceNow, Inc. and UiPath Inc., highlighting key financial metrics for each company.
| Metric | ServiceNow, Inc. | UiPath Inc. |
|---|---|---|
| Market Cap | 177.08B | 9.98B |
| Revenue | 10.98B | 1.43B |
| EBITDA | 2.23B | -145.34M |
| EBIT | 1.76B | -162.57M |
| Net Income | 1.43B | -73.69M |
| EPS | 6.92 | -0.13 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the latest fiscal year, ServiceNow demonstrated significant growth with a revenue increase to 10.98B, marking a robust 22% rise from the previous year. However, UiPath has faced challenges, reporting a revenue of 1.43B but experiencing a net loss of 73.69M, indicating ongoing struggles in profitability. The EBITDA for ServiceNow reflects positive operational efficiency, while UiPath’s negative EBITDA suggests the need for improvements in cost management and operational performance. Overall, ServiceNow’s stable growth trajectory contrasts sharply with UiPath’s difficulties in achieving profitability, highlighting differing operational efficiencies in their respective markets.
Financial Ratios Comparison
In this section, I present a comparative table of the most recent revenue and financial ratios for ServiceNow, Inc. (NOW) and UiPath Inc. (PATH).
| Metric | ServiceNow (NOW) | UiPath (PATH) |
|---|---|---|
| ROE | 14.83% | -3.99% |
| ROIC | 9.22% | -7.41% |
| P/E | 153.13 | -25.64 |
| P/B | 22.71 | 4.31 |
| Current Ratio | 1.10 | 2.93 |
| Quick Ratio | 1.10 | 2.93 |
| D/E | 0.24 | 0.04 |
| Debt-to-Assets | 11.18% | 2.72% |
| Interest Coverage | 59.30 | N/A |
| Asset Turnover | 0.54 | 0.50 |
| Fixed Asset Turnover | 4.47 | 14.41 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
ServiceNow exhibits significantly stronger financial indicators compared to UiPath. Its robust ROE and ROIC are noteworthy, suggesting effective capital utilization, while UiPath’s negative margins raise concerns about profitability. Moreover, ServiceNow’s lower debt levels indicate stronger financial health and risk management. The current and quick ratios for UiPath suggest better liquidity, but their underlying profitability issues may outweigh this advantage.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, reflecting its strategy to reinvest earnings for growth. The company maintains a robust free cash flow, which supports its share buyback programs, enhancing shareholder value despite the absence of dividends. Conversely, UiPath Inc. (PATH) also refrains from dividends, driven by a focus on innovation during its growth phase. Both companies prioritize long-term value creation; however, the lack of dividends necessitates careful monitoring of operational performance and cash flow sustainability.
Strategic Positioning
ServiceNow, Inc. (NOW) commands a substantial market share in the enterprise cloud computing sector, focusing on workflow automation and IT service management, with a market cap of $177B. Its competitive edge lies in its extensive product suite and strategic partnerships, notably with Celonis. In contrast, UiPath Inc. (PATH), valued at $9.98B, specializes in robotic process automation (RPA) solutions. While UiPath experiences competitive pressure from emerging automation technologies, both companies face potential disruption from advancements in AI and machine learning, necessitating continuous innovation.
Stock Comparison
In evaluating the stock performance of ServiceNow, Inc. (NOW) and UiPath Inc. (PATH), we observe significant price movements and trading dynamics over the past year that provide insights into their market standing.
Trend Analysis
For ServiceNow, Inc. (NOW), the overall percentage change over the past year is +17.06%, indicating a bullish trend. However, recent performance from September 21, 2025, to December 7, 2025, shows a decline of -11.19%. This recent downturn suggests a deceleration in momentum, with notable price fluctuations ranging from a high of 1124.98 to a low of 656.93. The standard deviation of 114.64 points to considerable volatility in its price movements.
Conversely, UiPath Inc. (PATH) has experienced a -15.27% change over the last year, categorizing it as a bearish trend. Notably, from September 21, 2025, to December 7, 2025, there has been a recent surge of +58.26%, indicating significant short-term recovery, albeit within a longer-term declining trajectory. The stock has fluctuated between 26.35 and 10.04, and the acceleration status reflects increasing volatility, with a standard deviation of 4.02.
In summary, while NOW shows a long-term bullish trend despite recent short-term challenges, PATH faces a bearish long-term outlook, albeit with recent positive momentum.
Analyst Opinions
Recent analyst recommendations indicate a cautious outlook for ServiceNow, Inc. (NOW) with a rating of B, reflecting concerns over its high price-to-earnings ratio. Analysts emphasize the company’s strong return on assets but suggest investors hold rather than buy. On the other hand, UiPath Inc. (PATH) has received a more favorable A- rating, driven by solid performance metrics, particularly in return on assets and equity. The consensus for PATH appears to be a buy, while NOW leans toward a hold strategy for 2025.
Stock Grades
In this section, I will present the latest stock grades for ServiceNow, Inc. (NOW) and UiPath Inc. (PATH), as evaluated by reputable grading 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 |
UiPath Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Canaccord Genuity | maintain | Buy | 2025-12-04 |
| Mizuho | maintain | Neutral | 2025-12-04 |
| Barclays | maintain | Equal Weight | 2025-12-04 |
| BMO Capital | maintain | Market Perform | 2025-12-04 |
| Needham | maintain | Hold | 2025-12-04 |
| Wells Fargo | maintain | Equal Weight | 2025-12-04 |
| Evercore ISI Group | maintain | In Line | 2025-12-04 |
| RBC Capital | maintain | Sector Perform | 2025-12-04 |
| UBS | upgrade | Neutral | 2025-10-23 |
| BMO Capital | maintain | Market Perform | 2025-10-02 |
Overall, the grades for ServiceNow indicate a strong confidence in its performance, with multiple companies maintaining positive ratings such as “Overweight” and “Buy.” In contrast, UiPath’s grades reflect a more cautious approach, with several analysts maintaining “Neutral” and “Equal Weight” ratings, suggesting a mixed outlook among investors.
Target Prices
The consensus target prices for the following companies indicate varying expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 860 | 1172.71 |
| UiPath Inc. | 17 | 14 | 16 |
For ServiceNow, Inc. (ticker: NOW), the current stock price of 853.12 is significantly below the consensus target price of 1172.71, suggesting a strong growth potential. Meanwhile, UiPath Inc. (ticker: PATH) is trading at 18.755, slightly above its consensus target of 16, indicating a more cautious outlook from analysts.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ServiceNow, Inc. (NOW) and UiPath Inc. (PATH) based on the most recent data available.
| Criterion | ServiceNow, Inc. (NOW) | UiPath Inc. (PATH) |
|---|---|---|
| Diversification | Strong across industries | Limited, focused on automation |
| Profitability | High net profit margin (12.97%) | Negative margins |
| Innovation | Leader in workflow automation | Innovative RPA solutions |
| Global presence | Strong presence in multiple sectors | Primarily in the US, Romania, Japan |
| Market Share | Significant in enterprise solutions | Growing but limited market share |
| Debt level | Low debt-to-equity ratio (0.24) | Very low debt levels (0.04) |
Key takeaways: ServiceNow showcases strong profitability and diversification, making it a robust choice for investors. In contrast, UiPath is focused on automation but struggles with profitability, highlighting the need for caution.
Risk Analysis
In this section, I present a comparative analysis of the risks associated with ServiceNow, Inc. (NOW) and UiPath Inc. (PATH).
| Metric | ServiceNow, Inc. (NOW) | UiPath Inc. (PATH) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Low | Moderate |
Both companies face market risks that could impact their valuations. Notably, UiPath is experiencing higher operational risks, as evidenced by its negative profit margins in recent fiscal reports. The ongoing global economic changes and regulatory scrutiny are also significant factors to consider.
Which one to choose?
In evaluating ServiceNow, Inc. (NOW) and UiPath Inc. (PATH), it’s important to note key financial metrics and market performance. ServiceNow demonstrates strong fundamentals with a market cap of 218B, a gross profit margin of 79%, and a net profit margin of 13%. Despite its high P/E ratio of 153, its recent stock trend is bullish, although it has seen a recent decline of 11%. In contrast, UiPath shows a lower market cap of 8B, but its gross profit margin is commendable at 83%, albeit with negative net margins. The stock trend for UiPath has been bearish, with a recent decline of 15%, despite a recent rebound of over 58%.
For growth-focused investors, UiPath may present a compelling opportunity due to its higher gross margin and recent price rebound. However, those prioritizing stability and established performance may prefer ServiceNow, which, despite its high valuation, has exhibited consistent profitability.
Risks include competition and market dependence, especially for UiPath in the automation sector.
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 UiPath Inc. to enhance your investment decisions:
