Critical Analysis: ServiceTitan (TTAN) and Its Competitors

ServiceTitan (NASDAQ:TTAN) is one of 252 publicly-traded companies in the “INTERNET SOFTWARE” industry, but how does it contrast to its competitors? We will compare ServiceTitan to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

60.4% of shares of all “INTERNET SOFTWARE” companies are owned by institutional investors. 51.7% of ServiceTitan shares are owned by insiders. Comparatively, 17.3% of shares of all “INTERNET SOFTWARE” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ServiceTitan and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ServiceTitan	-26.08%	-16.87%	-9.55%
ServiceTitan Competitors	-185.80%	-65.36%	-6.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for ServiceTitan and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceTitan	1	4	14	1	2.75
ServiceTitan Competitors	1697	10151	20312	535	2.60

ServiceTitan currently has a consensus price target of $132.67, indicating a potential upside of 43.44%. As a group, “INTERNET SOFTWARE” companies have a potential upside of 23.50%. Given ServiceTitan’s stronger consensus rating and higher probable upside, analysts plainly believe ServiceTitan is more favorable than its competitors.

Earnings & Valuation

This table compares ServiceTitan and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ServiceTitan	$771.88 million	-$239.09 million	-17.13
ServiceTitan Competitors	$2.20 billion	$337.44 million	-4.79

ServiceTitan’s competitors have higher revenue and earnings than ServiceTitan. ServiceTitan is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

ServiceTitan beats its competitors on 7 of the 12 factors compared.

ServiceTitan Company Profile

ServiceTitan, Inc. engages in the collection of field service activities required to install, maintain, and service the infrastructure and systems of residences and commercial buildings. The company was founded by Ara Mahdessian and Vahe Kuzoyan on June 8, 2008 and is headquartered in Glendale, CA.