© Reuters. ServiceNow vs. Zendesk: Which Software Stock Is a Better Buy?
Software companies such as ServiceNow (NYSE:) and Zendesk (NYSE:) have delivered robust returns to investors in the last few years. Between the two, let’s see which should be part of your shopping list this year.Software-as-a-service (SaaS) stocks such as ServiceNow (NOW) and Zendesk (ZEN) have generated significant wealth for long-term investors in the last decade. These companies have a subscription-based model that allow them to generate cash flows across business cycles.
In the last five years, ServiceNow stock has returned 673% while Zendesk has soared 355%, easily surpassing the S&P 500 returns of 120% since December 2016. However past returns don’t matter much to current investors.
Despite stellar gains, NOW and ZEN stocks are down 14% and 36% respectively from record highs allowing you to buy the dip. Between the two, let’s see which stock is currently the better buy.
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