Acuity Brands vs ServiceNow Which Performs Better?

Acuity Brands and ServiceNow are two companies in the technology sector that have been gaining the attention of investors in recent years. Acuity Brands is a leading provider of lighting and building management solutions, while ServiceNow offers cloud-based software and automation solutions for enterprises. Both companies have shown strong performance in the market, with Acuity Brands benefiting from the growth in smart building technology and ServiceNow capitalizing on the increasing demand for digital transformation services. Investors looking to capitalize on the tech industry may want to consider these two stocks in their portfolio.

Acuity Brands or ServiceNow?

When comparing Acuity Brands and ServiceNow, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Acuity Brands and ServiceNow.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Acuity Brands has a dividend yield of 0.22%, while ServiceNow has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Acuity Brands reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.31%. On the other hand, ServiceNow reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Acuity Brands P/E ratio at 24.89 and ServiceNow's P/E ratio at 159.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Acuity Brands P/B ratio is 4.42 while ServiceNow's P/B ratio is 22.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Acuity Brands has seen a 5-year revenue growth of 0.38%, while ServiceNow's is 2.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Acuity Brands's ROE at 19.11% and ServiceNow's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $329.31 for Acuity Brands and $1013.00 for ServiceNow. Over the past year, Acuity Brands's prices ranged from $174.67 to $334.66, with a yearly change of 91.60%. ServiceNow's prices fluctuated between $632.25 and $1038.00, with a yearly change of 64.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.