Financial Survey: Porch Group (NASDAQ:PRCH) and ServiceTitan (NASDAQ:TTAN)

Porch Group (NASDAQ:PRCH) and ServiceTitan (NASDAQ:TTAN) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Earnings & Valuation

This table compares Porch Group and ServiceTitan”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$482.41 million	4.49	$15.32 million	($0.12)	-137.00
ServiceTitan	$960.97 million	7.30	-$159.85 million	($1.36)	-53.45

Porch Group has higher earnings, but lower revenue than ServiceTitan. Porch Group is trading at a lower price-to-earnings ratio than ServiceTitan, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Porch Group has a beta of 3.18, indicating that its stock price is 218% more volatile than the S&P 500. Comparatively, ServiceTitan has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Porch Group and ServiceTitan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	1	2	5	1	2.67
ServiceTitan	1	2	14	0	2.76

Porch Group currently has a consensus target price of $19.64, suggesting a potential upside of 19.48%. ServiceTitan has a consensus target price of $96.38, suggesting a potential upside of 32.58%. Given ServiceTitan’s stronger consensus rating and higher probable upside, analysts plainly believe ServiceTitan is more favorable than Porch Group.

Insider and Institutional Ownership

48.5% of Porch Group shares are held by institutional investors. 27.8% of Porch Group shares are held by insiders. Comparatively, 39.9% of ServiceTitan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Porch Group and ServiceTitan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Porch Group	-2.67%	-68.47%	-1.67%
ServiceTitan	-12.12%	-5.65%	-4.93%

Summary

ServiceTitan beats Porch Group on 8 of the 15 factors compared between the two stocks.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.

About ServiceTitan

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.