HubSpot vs ServiceNow Which Is More Lucrative?

HubSpot and ServiceNow are two well-known companies in the tech industry, each offering unique solutions and services to businesses worldwide. HubSpot, founded in 2006, specializes in inbound marketing and sales software, while ServiceNow, established in 2003, focuses on cloud-based solutions for IT service management and operations. Both companies have experienced growth in recent years, with their stocks attracting the attention of investors seeking to capitalize on the expanding digital marketplace. In this comparison, we will analyze the key differences and similarities between HubSpot and ServiceNow stocks.

HubSpot or ServiceNow?

When comparing HubSpot 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 HubSpot 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. HubSpot 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. HubSpot 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 HubSpot P/E ratio at -2655.66 and ServiceNow's P/E ratio at 173.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HubSpot P/B ratio is 21.16 while ServiceNow's P/B ratio is 24.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HubSpot has seen a 5-year revenue growth of 2.26%, while ServiceNow's is 2.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HubSpot's ROE at -0.91% and ServiceNow's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $721.21 for HubSpot and $1114.60 for ServiceNow. Over the past year, HubSpot's prices ranged from $434.84 to $762.47, with a yearly change of 75.34%. ServiceNow's prices fluctuated between $637.99 and $1157.90, with a yearly change of 81.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.