NOW vs. PAYC

Last updated Jun 18, 2026

NOW (ServiceNow, Inc) and PAYC (Paycom Software, Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 10 years, NOW returned 20.81%/yr vs 11.73%/yr for PAYC. A 0.56 correlation means they provide meaningful diversification when combined.

Performance

NOW vs. PAYC - Performance Comparison

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

Returns By Period

In the year-to-date period, NOW achieves a -37.67% return, which is significantly lower than PAYC's -21.94% return. Over the past 10 years, NOW has outperformed PAYC with an annualized return of 20.81%, while PAYC has yielded a comparatively lower 11.73% annualized return.

NOW

• 1D: -5.77%
• 1M: -7.68%
• YTD: -37.67%
• 6M: -38.98%
• 1Y: -52.49%
• 3Y*: -5.49%
• 5Y*: -2.21%
• 10Y*: 20.81%

PAYC

• 1D: -4.19%
• 1M: -10.87%
• YTD: -21.94%
• 6M: -25.50%
• 1Y: -48.34%
• 3Y*: -26.55%
• 5Y*: -18.47%
• 10Y*: 11.73%

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

NOW vs. PAYC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NOW ServiceNow, Inc	-37.67%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	36.55%	75.40%
PAYC Paycom Software, Inc.	-21.94%	-21.70%	-0.04%	-33.06%	-25.26%	-8.19%	70.82%	116.22%	52.43%	76.59%

Correlation

The correlation between NOW and PAYC is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Apr 15, 2014	0.56

The correlation between NOW and PAYC shifts across timeframes, from 0.45 (3 years) to 0.61 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap NOW : $99.30B PAYC : $6.33B
EPS NOW : $1.68 PAYC : $8.58
PE Ratio NOW : 56.84 PAYC : 14.42
PEG Ratio NOW : 0.48 PAYC : 0.54
PS Ratio NOW : 7.15 PAYC : 3.24
PB Ratio NOW : 7.31 PAYC : 7.80
Total Revenue (TTM) NOW : $13.96B PAYC : $2.09B
Gross Profit (TTM) NOW : $10.69B PAYC : $1.70B
EBITDA (TTM) NOW : $2.80B PAYC : $803.80M

Return for Risk

NOW vs. PAYC — Risk / Return Rank

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

NOW

NOW Risk / Return Rank: 5
NOW Sharpe Ratio Rank: 4
NOW Sortino Ratio Rank: 5
NOW Omega Ratio Rank: 5
NOW Calmar Ratio Rank: 8
NOW Martin Ratio Rank: 5

PAYC

PAYC Risk / Return Rank: 4
PAYC Sharpe Ratio Rank: 2
PAYC Sortino Ratio Rank: 3
PAYC Omega Ratio Rank: 4
PAYC Calmar Ratio Rank: 5
PAYC Martin Ratio Rank: 6

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. PAYC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ServiceNow, Inc (NOW) and Paycom Software, Inc. (PAYC). 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	PAYC	Difference
Sharpe ratio: Return per unit of total volatility	-1.04	-1.27	+0.23
Sortino ratio: Return per unit of downside risk	-1.59	-1.99	+0.40
Omega ratio: Gain probability vs. loss probability	0.80	0.77	+0.03
Calmar ratio: Return relative to maximum drawdown	-0.87	-0.93	+0.06
Martin ratio: Return relative to average drawdown	-1.52	-1.47	-0.06

NOW vs. PAYC - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -1.04, which is comparable to the PAYC Sharpe Ratio of -1.27. The chart below compares the historical Sharpe Ratios of NOW and PAYC, 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. PAYC - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, smaller than the maximum PAYC drawdown of -78.99%. Use the drawdown chart below to compare losses from any high point for NOW and PAYC.

Drawdown Indicators

	NOW	PAYC	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-78.99%	+14.45%
Max Drawdown (1Y) Largest decline over 1 year	-60.28%	-52.12%	-8.16%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-68.70%	+4.16%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-78.99%	+14.45%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	-78.99%	+14.45%
Current Drawdown Current decline from peak	-59.21%	-77.06%	+17.85%
Average Drawdown Average peak-to-trough decline	-13.82%	-27.26%	+13.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	34.49%	33.67%	+0.82%

Volatility

NOW vs. PAYC - Volatility Comparison

ServiceNow, Inc (NOW) has a higher volatility of 24.42% compared to Paycom Software, Inc. (PAYC) at 13.07%. This indicates that NOW's price experiences larger fluctuations and is considered to be riskier than PAYC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	PAYC	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.42%	13.07%	+11.35%
Volatility (6M) Calculated over the trailing 6-month period	45.89%	30.54%	+15.35%
Volatility (1Y) Calculated over the trailing 1-year period	50.47%	38.14%	+12.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.51%	44.52%	-1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.91%	44.55%	-3.64%

Dividends

NOW vs. PAYC - Dividend Comparison

NOW has not paid dividends to shareholders, while PAYC's dividend yield for the trailing twelve months is around 1.21%.

Position	TTM	2025	2024	2023
NOW ServiceNow, Inc	0.00%	0.00%	0.00%	0.00%
PAYC Paycom Software, Inc.	1.21%	0.94%	0.73%	0.54%

Financials

NOW vs. PAYC - Profitability Comparison

The chart below illustrates the profitability comparison between ServiceNow, Inc and Paycom Software, 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%.

PAYC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported a gross profit of 484.60M and revenue of 571.90M. Therefore, the gross margin over that period was 84.7%.

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%.

PAYC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported an operating income of 210.20M and revenue of 571.90M, resulting in an operating margin of 36.8%.

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%.

PAYC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported a net income of 155.70M and revenue of 571.90M, resulting in a net margin of 27.2%.

Frequently Asked Questions

Can I hold both NOW and PAYC in my portfolio?

NOW and PAYC have a correlation of 0.56, 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 PAYC?

NOW has higher volatility (24.42%) compared to PAYC (13.07%). In terms of maximum drawdown, NOW dropped -64.54% vs PAYC's -78.99%.

Which has better risk-adjusted returns?

NOW currently has the higher Sharpe Ratio (-1.04 vs -1.27), 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.