Freshworks vs ServiceNow Which Is More Profitable?

Freshworks and ServiceNow are two prominent names in the software industry, both providing cloud-based solutions for businesses to improve efficiency and customer service. While Freshworks focuses on customer engagement and support with its suite of products, ServiceNow offers a broader range of IT service management solutions. When comparing their stocks, investors often consider factors such as revenue growth, market share, and profitability. Both companies have shown strong performance in recent years, making them attractive options for potential investors.

Freshworks or ServiceNow?

When comparing Freshworks 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 Freshworks 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. Freshworks has a dividend yield of -%, while ServiceNow has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Freshworks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Freshworks P/E ratio at -49.12 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. Freshworks P/B ratio is 4.39 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, Freshworks has seen a 5-year revenue growth of -0.73%, while ServiceNow's is 2.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Freshworks's ROE at -9.23% and ServiceNow's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.28 for Freshworks and $1013.00 for ServiceNow. Over the past year, Freshworks's prices ranged from $10.81 to $24.98, with a yearly change of 131.04%. 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.