In the rapidly evolving landscape of technology, ServiceNow, Inc. (NOW) and UiPath Inc. (PATH) stand out as key players in the automation sector, though they operate within different niches. While ServiceNow focuses on enterprise cloud computing solutions that streamline IT service management, UiPath specializes in robotic process automation (RPA) to enhance operational efficiency. Both companies are innovating to redefine workflows and drive productivity gains across various industries. As we delve deeper, I will help you identify 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, focusing on automating and managing services across various sectors, including government, healthcare, and financial services. Founded in 2004 and headquartered in Santa Clara, California, the company specializes in its Now platform, which integrates artificial intelligence and machine learning to optimize workflow automation. ServiceNow’s diverse offerings encompass IT service management, customer service management, and governance, risk, and compliance solutions. With a market capitalization of approximately $169B, the company continues to expand its reach through strategic partnerships, such as with Celonis, enhancing its automation capabilities.
UiPath Inc. Overview
UiPath Inc., established in 2005 and based in New York City, provides a comprehensive automation platform primarily focused on robotic process automation (RPA). The company’s solutions enable organizations to streamline operations by combining artificial intelligence with user-friendly tools for process discovery and automation deployment. With a market cap of around $7B, UiPath serves key industries like banking, healthcare, and government. Its platform’s low-code environment allows users to create automations without extensive programming knowledge, making RPA accessible to a broader audience.
Key Similarities and Differences
Both ServiceNow and UiPath operate in the automation space, emphasizing workflow optimization and efficiency. However, while ServiceNow focuses more on enterprise service management across various departments, UiPath specializes in robotic process automation with a strong emphasis on user-friendly, low-code solutions for automation. Their target markets differ, with ServiceNow catering to a wider range of industries and UiPath concentrating on sectors like banking and healthcare.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for ServiceNow, Inc. and UiPath Inc., highlighting key financial metrics.
| Metric | ServiceNow, Inc. | UiPath Inc. |
|---|---|---|
| Revenue | 10.98B | 1.43B |
| EBITDA | 2.23B | -145M |
| EBIT | 1.76B | -163M |
| Net Income | 1.43B | -74M |
| EPS | 6.92 | -0.13 |
Interpretation of Income Statement
In the most recent fiscal year, ServiceNow demonstrated strong growth with a revenue increase of 22% compared to the previous year, resulting in a net income of 1.43B. The company maintained healthy EBITDA and EBIT margins, indicating efficient operational management. Conversely, UiPath experienced a decline in performance, with revenue growth slowing down and negative net income, suggesting challenges in profitability and cost management. The stark contrast illustrates ServiceNow’s robust market position against UiPath’s ongoing struggles to achieve sustainable profitability.
Financial Ratios Comparison
The following table provides a comparative overview of the most recent financial ratios for ServiceNow, Inc. (NOW) and UiPath Inc. (PATH). This will assist in evaluating their financial health and performance.
| 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 (NOW) demonstrates strong profitability and efficient use of equity with a solid ROE and ROIC. In contrast, UiPath (PATH) shows negative returns and high leverage, indicating financial stress. The current and quick ratios suggest that while UiPath has excellent liquidity, it struggles operationally, as evidenced by negative margins. Overall, NOW appears to be a safer investment option, while PATH’s financial metrics raise significant concerns.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, reflecting a strategy focused on reinvestment for growth. Its negative dividend payout ratio emphasizes this commitment. The company engages in share buybacks, which can enhance shareholder value, but the absence of dividends means investors rely on capital appreciation. Conversely, UiPath Inc. (PATH) also does not distribute dividends, prioritizing capital for expansion and innovation. While both companies aim for long-term value creation, the lack of immediate returns may pose risks for investors seeking regular income.
Strategic Positioning
ServiceNow, Inc. (NOW) holds a significant market share in the enterprise cloud computing sector, particularly in workflow automation, with a market cap of $169B. Its robust platform integrates AI, machine learning, and RPA, positioning it well against competitors like UiPath Inc. (PATH), which focuses on robotic process automation with a market cap of $7B. Both companies face competitive pressure from emerging technologies and market entrants, necessitating continuous innovation to maintain their leadership.
Stock Comparison
In the past year, ServiceNow, Inc. (NOW) has demonstrated notable price movements, reflecting a bullish trend overall, despite recent fluctuations. Conversely, UiPath Inc. (PATH) has experienced significant declines, indicating a bearish sentiment in the market.
Trend Analysis
ServiceNow, Inc. (NOW) has seen a price change of +15.09% over the past year. This indicates a bullish trend overall; however, a recent downturn of -11.02% from September 7, 2025, to November 23, 2025, suggests a deceleration in momentum. The stock reached a high of 1,124.98 and a low of 656.93 during this period, with a standard deviation of 117.56 indicating moderate volatility.
UiPath Inc. (PATH) has experienced a substantial price change of -46.94% over the past year, reflecting a bearish trend. Despite a recent recovery of +14.71% from September 7, 2025, to November 23, 2025, this is insufficient to alter the overall negative outlook. The stock saw a high of 26.35 and a low of 10.04, with a standard deviation of 4.2, suggesting relatively low volatility in the recent timeframe.
Analyst Opinions
Recent analyst recommendations for ServiceNow, Inc. (NOW) indicate a “Buy” rating, with strong scores in discounted cash flow and return on equity, suggesting robust growth potential. Analysts praise its innovative solutions and market leadership. In contrast, UiPath Inc. (PATH) holds a “Hold” rating, with analysts like those at FMP noting concerns about its debt-to-equity ratio and lower overall score compared to competitors. The consensus for NOW is “Buy,” while PATH leans towards “Hold,” reflecting cautious optimism in the current market environment.
Stock Grades
In the current market landscape, reliable stock grades can provide valuable insights into potential investment opportunities. Here are the latest grades for ServiceNow, Inc. and UiPath Inc.
ServiceNow, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-30 |
| Canaccord Genuity | maintain | Buy | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| Barclays | maintain | Overweight | 2025-10-30 |
| TD Cowen | maintain | Buy | 2025-10-30 |
| JP Morgan | maintain | Overweight | 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 |
|---|---|---|---|
| UBS | upgrade | Neutral | 2025-10-23 |
| BMO Capital | maintain | Market Perform | 2025-10-02 |
| Canaccord Genuity | maintain | Buy | 2025-09-08 |
| Truist Securities | maintain | Hold | 2025-09-05 |
| Needham | maintain | Hold | 2025-09-05 |
| BMO Capital | maintain | Market Perform | 2025-09-05 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| Morgan Stanley | maintain | Equal Weight | 2025-06-02 |
| Truist Securities | maintain | Hold | 2025-05-30 |
| DA Davidson | maintain | Neutral | 2025-05-30 |
Overall, ServiceNow shows a strong trend with consistent “Buy” and “Overweight” ratings from multiple analysts, indicating robust investor confidence. In contrast, UiPath has seen an upgrade to “Neutral,” suggesting a cautious optimism but still reflects a more mixed sentiment among analysts. As always, consider these insights alongside your investment strategy and risk tolerance.
Target Prices
The consensus target prices for the selected companies indicate strong potential upside from their current stock prices.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 1093 | 1196.77 |
| UiPath Inc. | 17 | 13 | 15.33 |
For ServiceNow, Inc. (NOW), the consensus target price of 1196.77 suggests significant upside potential compared to its current price of 813.10. Similarly, UiPath Inc. (PATH) has a consensus target price of 15.33, which reflects a modest upside from its current price of 13.18. Overall, analysts seem optimistic about both stocks.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ServiceNow, Inc. (NOW) and UiPath Inc. (PATH) based on the most recent performance metrics.
| Criterion | ServiceNow, Inc. (NOW) | UiPath Inc. (PATH) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 12.97%) | Negative (Net Margin: -5.15%) |
| Innovation | High | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Leading | Growing |
| Debt level | Low (Debt-to-Equity: 0.24) | Very Low (Debt-to-Equity: 0.04) |
In summary, ServiceNow displays strong profitability and extensive global presence, making it a robust investment option. Conversely, UiPath shows potential for growth but faces challenges in profitability, indicating higher risk for investors.
Risk Analysis
The following table outlines the key risks associated with ServiceNow, Inc. (NOW) and UiPath Inc. (PATH) as of the most recent fiscal year.
| Metric | ServiceNow, Inc. (NOW) | UiPath Inc. (PATH) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
Both companies face distinct risks, with UiPath experiencing higher operational and regulatory challenges. Recent fluctuations in their market environments and ongoing regulatory scrutiny further amplify these risks. Investors should proceed with caution, particularly in the volatile automation and technology sectors.
Which one to choose?
When comparing ServiceNow, Inc. (NOW) and UiPath Inc. (PATH), the fundamentals indicate a distinct advantage for ServiceNow. NOW shows a strong gross profit margin of 79.2% and a net income margin of 12.97%, with a market cap of approximately $218B. In contrast, PATH has experienced significant losses, reflected in its negative operating and net profit margins, along with a market cap of about $7.96B.
Analysts rate NOW at a solid “B,” while PATH is rated “B-.” The overall trend for NOW is bullish with a recent 15.09% price increase, compared to PATH’s bearish trend with a 46.94% decline.
For growth-focused investors, NOW appears favorable due to its stability and profitability, while risk-averse investors may prefer the potential recovery of PATH, albeit with considerable risks. The primary concern for PATH remains its financial sustainability and market competition.
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:
