NOW vs. ZS

Last updated Jun 9, 2026

NOW (ServiceNow, Inc) and ZS (Zscaler, Inc.) are both stocks. Both are in the Technology sector — NOW in Software - Application, ZS in Software - Infrastructure. Over the past 5 years, NOW returned 4.20%/yr vs -7.99%/yr for ZS. A 0.65 correlation means they provide meaningful diversification when combined.

Performance

NOW vs. ZS - Performance Comparison

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

Returns By Period

In the year-to-date period, NOW achieves a -25.46% return, which is significantly higher than ZS's -42.54% return.

NOW

• 1D: 1.55%
• 1M: 25.24%
• YTD: -25.46%
• 6M: -33.11%
• 1Y: -44.58%
• 3Y*: 2.25%
• 5Y*: 4.20%
• 10Y*: 22.66%

ZS

• 1D: -1.17%
• 1M: -15.04%
• YTD: -42.54%
• 6M: -47.22%
• 1Y: -57.35%
• 3Y*: -5.02%
• 5Y*: -7.99%
• 10Y*: —

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

NOW vs. ZS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
NOW ServiceNow, Inc	-25.46%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	4.75%
ZS Zscaler, Inc.	-42.54%	24.67%	-18.57%	98.00%	-65.18%	60.90%	329.48%	18.59%	18.82%

Correlation

The correlation between NOW and ZS is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 19, 2018	0.65

The correlation between NOW and ZS has been stable across timeframes, ranging from 0.63 to 0.69 - a consistent structural relationship.

Fundamentals

Market Cap NOW : $118.76B ZS : $20.78B
EPS NOW : $1.68 ZS : -$0.49
PS Ratio NOW : 8.56 ZS : 6.47
PB Ratio NOW : 8.75 ZS : 8.78
Total Revenue (TTM) NOW : $13.96B ZS : $3.17B
Gross Profit (TTM) NOW : $10.69B ZS : $2.43B
EBITDA (TTM) NOW : $2.80B ZS : $69.08M

Return for Risk

NOW vs. ZS — Risk / Return Rank

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

NOW

NOW Risk / Return Rank: 10
NOW Sharpe Ratio Rank: 7
NOW Sortino Ratio Rank: 9
NOW Omega Ratio Rank: 9
NOW Calmar Ratio Rank: 14
NOW Martin Ratio Rank: 10

ZS

ZS Risk / Return Rank: 6
ZS Sharpe Ratio Rank: 5
ZS Sortino Ratio Rank: 7
ZS Omega Ratio Rank: 5
ZS Calmar Ratio Rank: 7
ZS Martin Ratio Rank: 4

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. ZS - Risk-Adjusted Trends Comparison

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

	NOW	ZS	Difference
Sharpe ratio: Return per unit of total volatility	-0.90	-0.98	+0.08
Sortino ratio: Return per unit of downside risk	-1.24	-1.36	+0.12
Omega ratio: Gain probability vs. loss probability	0.84	0.79	+0.05
Calmar ratio: Return relative to maximum drawdown	-0.74	-0.89	+0.14
Martin ratio: Return relative to average drawdown	-1.33	-1.59	+0.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NOW vs. ZS - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -0.90, which is comparable to the ZS Sharpe Ratio of -0.98. The chart below compares the historical Sharpe Ratios of NOW and ZS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NOW	ZS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.90	-0.98	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	-0.14	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.31	+0.30

Drawdowns

NOW vs. ZS - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, smaller than the maximum ZS drawdown of -76.41%. Use the drawdown chart below to compare losses from any high point for NOW and ZS.

Drawdown Indicators

	NOW	ZS	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-76.41%	+11.87%
Max Drawdown (1Y) Largest decline over 1 year	-60.28%	-64.89%	+4.61%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-64.89%	+0.35%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-76.41%	+11.87%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	—	—
Current Drawdown Current decline from peak	-51.22%	-64.95%	+13.73%
Average Drawdown Average peak-to-trough decline	-13.74%	-32.63%	+18.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.44%	36.05%	-2.61%

Volatility

NOW vs. ZS - Volatility Comparison

The current volatility for ServiceNow, Inc (NOW) is 24.74%, while Zscaler, Inc. (ZS) has a volatility of 44.44%. This indicates that NOW experiences smaller price fluctuations and is considered to be less risky than ZS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	ZS	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.74%	44.44%	-19.70%
Volatility (6M) Calculated over the trailing 6-month period	46.58%	57.30%	-10.72%
Volatility (1Y) Calculated over the trailing 1-year period	49.79%	58.72%	-8.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.41%	56.10%	-12.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.82%	58.42%	-17.60%

Dividends

NOW vs. ZS - Dividend Comparison

Neither NOW nor ZS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

NOW vs. ZS - Profitability Comparison

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

ZS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported a gross profit of 657.82M and revenue of 850.48M. Therefore, the gross margin over that period was 77.4%.

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%.

ZS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported an operating income of -29.64M and revenue of 850.48M, resulting in an operating margin of -3.5%.

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%.

ZS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported a net income of -13.88M and revenue of 850.48M, resulting in a net margin of -1.6%.

Frequently Asked Questions

Can I hold both NOW and ZS in my portfolio?

NOW and ZS have a correlation of 0.65, 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 ZS?

ZS has higher volatility (44.44%) compared to NOW (24.74%). In terms of maximum drawdown, NOW dropped -64.54% vs ZS's -76.41%.

Which has better risk-adjusted returns?

NOW currently has the higher Sharpe Ratio (-0.90 vs -0.98), 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.