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NOW vs. SHOP
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility
Financials

Correlation

The correlation between NOW and SHOP is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

NOW vs. SHOP

Last updated Jun 3, 2025

Compare and contrast key facts about ServiceNow, Inc. (NOW) and Shopify Inc. (SHOP).

Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NOW or SHOP.

Performance

NOW vs. SHOP - Performance Comparison

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

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Key characteristics

Sharpe Ratio

NOW:

1.30

SHOP:

1.34

Sortino Ratio

NOW:

1.47

SHOP:

2.15

Omega Ratio

NOW:

1.21

SHOP:

1.29

Calmar Ratio

NOW:

1.00

SHOP:

1.19

Martin Ratio

NOW:

2.76

SHOP:

5.75

Ulcer Index

NOW:

13.92%

SHOP:

14.35%

Daily Std Dev

NOW:

41.87%

SHOP:

60.58%

Max Drawdown

NOW:

-51.30%

SHOP:

-84.82%

Current Drawdown

NOW:

-13.52%

SHOP:

-36.98%

Fundamentals

Market Cap

NOW:

$209.66B

SHOP:

$137.91B

EPS

NOW:

$7.39

SHOP:

$1.23

PE Ratio

NOW:

136.96

SHOP:

86.62

PEG Ratio

NOW:

2.26

SHOP:

1.12

PS Ratio

NOW:

18.28

SHOP:

14.70

PB Ratio

NOW:

20.68

SHOP:

12.51

Total Revenue (TTM)

NOW:

$11.47B

SHOP:

$9.38B

Gross Profit (TTM)

NOW:

$9.05B

SHOP:

$4.68B

EBITDA (TTM)

NOW:

$2.34B

SHOP:

$1.23B

Returns By Period

In the year-to-date period, NOW achieves a -4.53% return, which is significantly lower than SHOP's 0.20% return. Over the past 10 years, NOW has underperformed SHOP with an annualized return of 29.40%, while SHOP has yielded a comparatively higher 44.21% annualized return.

NOW

YTD

-4.53%

1M

3.56%

6M

-3.46%

1Y

54.07%

3Y*

27.14%

5Y*

21.13%

10Y*

29.40%

SHOP

YTD

0.20%

1M

7.35%

6M

-5.70%

1Y

80.12%

3Y*

44.42%

5Y*

6.93%

10Y*

44.21%

*Annualized

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ServiceNow, Inc.

Shopify Inc.

Go deeper with the Portfolio Analysis tool — backtest performance, assess risk, compare to benchmarks, and more

Risk-Adjusted Performance

NOW vs. SHOP — Risk-Adjusted Performance Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
NOW
The Risk-Adjusted Performance Rank of NOW is 8080
Overall Rank
The Sharpe Ratio Rank of NOW is 8787
Sharpe Ratio Rank
The Sortino Ratio Rank of NOW is 7676
Sortino Ratio Rank
The Omega Ratio Rank of NOW is 7777
Omega Ratio Rank
The Calmar Ratio Rank of NOW is 8484
Calmar Ratio Rank
The Martin Ratio Rank of NOW is 7777
Martin Ratio Rank
SHOP
The Risk-Adjusted Performance Rank of SHOP is 8787
Overall Rank
The Sharpe Ratio Rank of SHOP is 8888
Sharpe Ratio Rank
The Sortino Ratio Rank of SHOP is 8787
Sortino Ratio Rank
The Omega Ratio Rank of SHOP is 8686
Omega Ratio Rank
The Calmar Ratio Rank of SHOP is 8686
Calmar Ratio Rank
The Martin Ratio Rank of SHOP is 8888
Martin Ratio Rank
The risk-adjusted ranks indicate the investment's position relative to the market. A rank closer to 100 signifies top-performing investments, while a rank closer to 0 might suggest underperformance, based on the selected ratio. The values are calculated based on the past 12 months of returns.

NOW vs. SHOP - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for ServiceNow, Inc. (NOW) and Shopify Inc. (SHOP). 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.

The current NOW Sharpe Ratio is 1.30, which is comparable to the SHOP Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of NOW and SHOP, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Go to the full Sharpe Ratio tool to analyze any stock or portfolio. Customize time frames, set your own risk-free rate, and more

Dividends

NOW vs. SHOP - Dividend Comparison

Neither NOW nor SHOP has paid dividends to shareholders.

Tickers have no history of dividend payments

Drawdowns

NOW vs. SHOP - Drawdown Comparison

The maximum NOW drawdown since its inception was -51.30%, smaller than the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for NOW and SHOP.

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Go to the full Drawdowns tool for more analysis options, including inflation-adjusted drawdowns, and more

Volatility

NOW vs. SHOP - Volatility Comparison

The current volatility for ServiceNow, Inc. (NOW) is 6.27%, while Shopify Inc. (SHOP) has a volatility of 16.93%. This indicates that NOW experiences smaller price fluctuations and is considered to be less risky than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Financials

NOW vs. SHOP - Financials Comparison

This section allows you to compare key financial metrics between ServiceNow, Inc. and Shopify Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.

Quarterly
Annual

Total Revenue: Total amount of money received from sales and other business activities

500.00M1.00B1.50B2.00B2.50B3.00B20212022202320242025
3.09B
2.36B
(NOW) Total Revenue
(SHOP) Total Revenue
Values in USD except per share items

NOW vs. SHOP - Profitability Comparison

The chart below illustrates the profitability comparison between ServiceNow, Inc. and Shopify Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.
Gross Margin
Operating Margin
Net Margin
Quarterly
Annual
50.0%60.0%70.0%80.0%20212022202320242025
78.9%
49.5%
(NOW) Gross Margin
(SHOP) Gross Margin
NOW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2025, ServiceNow, Inc. reported a gross profit of 2.44B and revenue of 3.09B. Therefore, the gross margin over that period was 78.9%.

SHOP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2025, Shopify Inc. reported a gross profit of 1.17B and revenue of 2.36B. Therefore, the gross margin over that period was 49.5%.

NOW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2025, ServiceNow, Inc. reported an operating income of 451.00M and revenue of 3.09B, resulting in an operating margin of 14.6%.

SHOP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2025, Shopify Inc. reported an operating income of 203.00M and revenue of 2.36B, resulting in an operating margin of 8.6%.

NOW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2025, ServiceNow, Inc. reported a net income of 460.00M and revenue of 3.09B, resulting in a net margin of 14.9%.

SHOP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2025, Shopify Inc. reported a net income of -682.00M and revenue of 2.36B, resulting in a net margin of -28.9%.