InvestMoat

Head to head

ServiceNow vs Salesforce

Salesforce is cheaper. So why does ServiceNow win?

The short answer

ServiceNow wins, 72 to 66, on moat and growth.

Salesforce wins on valuation, but ServiceNow's lead on moat counts for more.

ServiceNow full analysisSalesforce full analysisSwap in another name

NOW · Software

ServiceNow, Inc.

…

HoldFull analysis

CRM · Software

Salesforce Inc.

…

Speculative BuyFull analysis

Scores

NOW

CRM

Composite
72
(higher)
66
Moat
74
(higher)
65
Growth
79
(higher)
70
Valuation
64
65
(higher)

Price targets

NOW

CRM

Bear
$60
$150
Base
$155
$250
Bull
$240
$350
Upside to base
—
—

Growth

NOW

CRM

Revenue CAGR, 3–5 yr
18–21%
9-12%

AI-resilient moats · 80%

NOW

CRM

Proprietary Data
Intact
Intact
Regulatory Lock-In
Intact
Intact
Network Effects
Intact
Intact
Transaction Embedding
Intact
Intact
System of Record
Strong
Strong
Scale Economics
N/A
N/A
Brand & Pricing Power
N/A
N/A

AI-vulnerable moats · 20%

NOW

CRM

Learned Interfaces
Intact (higher)
Weakened
Business Logic
Strong (higher)
Weakened
Public Data Access
N/A
N/A
Talent Scarcity
Intact (higher)
Weakened
Bundling
Strong (higher)
Weakened

Shaded cells mark the higher score or stronger moat on each row. Valuation and composite use the live price when it is available, the same as each stock page.

ServiceNow or Salesforce? Common questions

Which is the better stock, ServiceNow or Salesforce?

ServiceNow wins, 72 to 66, on moat and growth. Salesforce wins on valuation, but ServiceNow's lead on moat counts for more. Our rating: ServiceNow Hold, Salesforce Speculative Buy.

Does ServiceNow or Salesforce have the wider moat?

ServiceNow scores 74 on moat to Salesforce's 65. ServiceNow is rated stronger on business logic, bundling and learned interfaces.

Which is growing faster, ServiceNow or Salesforce?

ServiceNow scores 79 on growth to Salesforce's 70. We expect ServiceNow to grow 18–21% a year, Salesforce 9–12%.

Is ServiceNow or Salesforce cheaper right now?

Salesforce scores 65 on valuation to ServiceNow's 64. In our base case, Salesforce has less downside: −1% vs −2%.

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Scores in the answers use the price each valuation was last struck at; the table above updates with the live price. Not investment advice.