NOW vs. DOCU

Last updated Jun 13, 2026

NOW (ServiceNow, Inc) and DOCU (DocuSign, Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 5 years, NOW returned 0.51%/yr vs -29.19%/yr for DOCU. A 0.59 correlation means they provide meaningful diversification when combined.

Performance

NOW vs. DOCU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ServiceNow, Inc (NOW) and DocuSign, Inc. (DOCU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with NOW having a -33.32% return and DOCU slightly lower at -34.17%.

NOW

• 1D: -0.90%
• 1M: 12.87%
• YTD: -33.32%
• 6M: -40.96%
• 1Y: -48.34%
• 3Y*: -2.72%
• 5Y*: 0.51%
• 10Y*: 21.48%

DOCU

• 1D: 1.08%
• 1M: -1.03%
• YTD: -34.17%
• 6M: -36.68%
• 1Y: -39.20%
• 3Y*: -6.61%
• 5Y*: -29.19%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

NOW vs. DOCU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
NOW ServiceNow, Inc	-33.32%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	7.80%
DOCU DocuSign, Inc.	-34.17%	-23.95%	51.29%	7.27%	-63.61%	-31.48%	199.96%	84.91%	5.47%

Correlation

The correlation between NOW and DOCU is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Apr 27, 2018	0.59

The correlation between NOW and DOCU shifts across timeframes, from 0.53 (3 years) to 0.63 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap NOW : $106.24B DOCU : $8.85B
EPS NOW : $1.68 DOCU : $1.53
PE Ratio NOW : 60.81 DOCU : 29.42
PEG Ratio NOW : 0.51 DOCU : 0.05
PS Ratio NOW : 7.65 DOCU : 2.82
PB Ratio NOW : 7.83 DOCU : 4.86
Total Revenue (TTM) NOW : $13.96B DOCU : $3.29B
Gross Profit (TTM) NOW : $10.69B DOCU : $2.61B
EBITDA (TTM) NOW : $2.80B DOCU : $568.83M

Return for Risk

NOW vs. DOCU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NOW

NOW Risk / Return Rank: 8
NOW Sharpe Ratio Rank: 5
NOW Sortino Ratio Rank: 7
NOW Omega Ratio Rank: 7
NOW Calmar Ratio Rank: 11
NOW Martin Ratio Rank: 8

DOCU

DOCU Risk / Return Rank: 10
DOCU Sharpe Ratio Rank: 7
DOCU Sortino Ratio Rank: 9
DOCU Omega Ratio Rank: 10
DOCU Calmar Ratio Rank: 12
DOCU Martin Ratio Rank: 10

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NOW vs. DOCU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ServiceNow, Inc (NOW) and DocuSign, Inc. (DOCU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NOW	DOCU	Difference
Sharpe ratio: Return per unit of total volatility	-0.99	-0.92	-0.07
Sortino ratio: Return per unit of downside risk	-1.44	-1.22	-0.22
Omega ratio: Gain probability vs. loss probability	0.82	0.85	-0.03
Calmar ratio: Return relative to maximum drawdown	-0.82	-0.80	-0.02
Martin ratio: Return relative to average drawdown	-1.45	-1.36	-0.09

NOW vs. DOCU - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -0.99, which is comparable to the DOCU Sharpe Ratio of -0.92. The chart below compares the historical Sharpe Ratios of NOW and DOCU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NOW vs. DOCU - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, smaller than the maximum DOCU drawdown of -87.57%. Use the drawdown chart below to compare losses from any high point for NOW and DOCU.

Drawdown Indicators

	NOW	DOCU	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-87.57%	+23.03%
Max Drawdown (1Y) Largest decline over 1 year	-60.28%	-50.89%	-9.39%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-60.98%	-3.56%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-87.57%	+23.03%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	—	—
Current Drawdown Current decline from peak	-56.36%	-85.48%	+29.12%
Average Drawdown Average peak-to-trough decline	-13.78%	-49.90%	+36.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	34.02%	30.04%	+3.98%

Volatility

NOW vs. DOCU - Volatility Comparison

ServiceNow, Inc (NOW) has a higher volatility of 25.56% compared to DocuSign, Inc. (DOCU) at 16.54%. This indicates that NOW's price experiences larger fluctuations and is considered to be riskier than DOCU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	DOCU	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.56%	16.54%	+9.02%
Volatility (6M) Calculated over the trailing 6-month period	47.01%	34.72%	+12.29%
Volatility (1Y) Calculated over the trailing 1-year period	50.12%	44.60%	+5.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.44%	57.83%	-14.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.86%	56.45%	-15.59%

Dividends

NOW vs. DOCU - Dividend Comparison

Neither NOW nor DOCU has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

NOW vs. DOCU - Profitability Comparison

The chart below illustrates the profitability comparison between ServiceNow, Inc and DocuSign, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

NOW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a gross profit of 2.83B and revenue of 3.77B. Therefore, the gross margin over that period was 75.1%.

DOCU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, DocuSign, Inc. reported a gross profit of 658.97M and revenue of 830.24M. Therefore, the gross margin over that period was 79.4%.

NOW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported an operating income of 503.00M and revenue of 3.77B, resulting in an operating margin of 13.3%.

DOCU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, DocuSign, Inc. reported an operating income of 111.31M and revenue of 830.24M, resulting in an operating margin of 13.4%.

NOW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a net income of 469.00M and revenue of 3.77B, resulting in a net margin of 12.4%.

DOCU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, DocuSign, Inc. reported a net income of 78.20M and revenue of 830.24M, resulting in a net margin of 9.4%.

Frequently Asked Questions

Can I hold both NOW and DOCU in my portfolio?

NOW and DOCU have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOW or DOCU?

NOW has higher volatility (25.56%) compared to DOCU (16.54%). In terms of maximum drawdown, NOW dropped -64.54% vs DOCU's -87.57%.

Which has better risk-adjusted returns?

DOCU currently has the higher Sharpe Ratio (-0.92 vs -0.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.