Can Affirm Outrun ServiceNow in the Next Rally?
ServiceNow fell -12% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Affirm gives you more. Affirm (AFRM) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs ServiceNow (NOW) stock, suggesting you may be better off investing in AFRM
- AFRM’s quarterly revenue growth was 33.6%, vs. NOW’s 21.8%.
- In addition, its Last 12 Months revenue growth came in at 37.0%, ahead of NOW’s 21.1%.
- AFRM’s LTM margin is higher: 15.6% vs. NOW’s 13.9%.
These differences become even clearer when you look at the financials side by side. The table highlights how NOW’s fundamentals stack up against those of AFRM on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| NOW | AFRM | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 90.5 | 42.3 | AFRM |
| Revenue Growth | |||
| Last Quarter | 21.8% | 33.6% | AFRM |
| Last 12 Months | 21.1% | 37.0% | AFRM |
| Last 3 Year Average | 22.3% | 34.4% | AFRM |
| Operating Margins | |||
| Last 12 Months | 13.9% | 15.6% | AFRM |
| Last 3 Year Average | 11.2% | -13.4% | NOW |
| Momentum | |||
| Last 3 Year Return | 91.0% | 533.2% | NOW |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: NOW Revenue Comparison | AFRM Revenue Comparison
See more margin details: NOW Operating Income Comparison | AFRM Operating Income Comparison
See detailed fundamentals on Buy or Sell AFRM Stock and Buy or Sell NOW Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| NOW Return | 95% | 18% | -40% | 82% | 50% | -18% | 206% | ||
| AFRM Return | � | � | -90% | 408% | 24% | 10% | � | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 111% | ||
| Monthly Win Rates [3] | |||||||||
| NOW Win Rate | 83% | 50% | 17% | 75% | 75% | 42% | 57% | ||
| AFRM Win Rate | � | 36% | 25% | 67% | 33% | 50% | � | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | 65% | ||
| Max Drawdowns [4] | |||||||||
| NOW Max Drawdown | -12% | -17% | -47% | -6% | -9% | -32% | -20% | ||
| AFRM Max Drawdown | � | � | -91% | -7% | -51% | -41% | � | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/15/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read AFRM Dip Buyer Analyses and NOW Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about NOW or AFRM? Consider portfolio approach.
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