In the ever-evolving landscape of technology, two companies stand out: EPAM Systems, Inc. and ServiceTitan, Inc. Both are significant players in their respective sectors—information technology services and software applications—making them ripe for comparison. While EPAM excels in digital platform engineering, ServiceTitan brings innovation to field service management. This article will dive into their strategies and performance metrics to help you determine which company could be the more compelling investment opportunity.
Table of contents
Company Overview
EPAM Overview
EPAM Systems, Inc. is a leading global provider of digital platform engineering and software development services. Founded in 1993 and headquartered in Newtown, Pennsylvania, EPAM has carved out a substantial presence in the Information Technology Services sector. The company focuses on delivering comprehensive engineering services that encompass platform selection, customization, and cross-platform migration. EPAM also provides infrastructure management, software testing, and quality assurance consulting, catering to a diverse range of industries, including financial services, healthcare, and software technology. With a market capitalization of approximately $11.25B, EPAM employs around 61,200 professionals and is recognized for its innovative approach to integrated engineering practices and smart automation.
ServiceTitan Overview
ServiceTitan, Inc. specializes in software solutions that streamline field service management for residential and commercial building infrastructures. Established in 2008 and based in Glendale, California, ServiceTitan has quickly established itself in the Software – Application sector. The company focuses on providing tools that facilitate installation, maintenance, and servicing of various systems, which enhances operational efficiency for service providers. With a market cap nearing $10.18B, ServiceTitan employs approximately 3,049 individuals and is known for its user-friendly interface and robust customer support, positioning itself as a leader in the rapidly evolving field service management software market.
Key similarities and differences
Both EPAM and ServiceTitan operate within the technology sector, but they serve distinct markets. EPAM focuses on comprehensive software development and engineering services across multiple industries, while ServiceTitan specializes in field service management solutions for the home and commercial service sectors. Their business models reflect this divergence, with EPAM offering a broader range of services compared to ServiceTitan’s targeted focus on enhancing operational efficiency for its niche clientele.
Income Statement Comparison
In this section, I present a comparative analysis of the most recent income statements for EPAM Systems, Inc. and ServiceTitan, Inc., focusing on key financial metrics.
| Metric | EPAM Systems, Inc. | ServiceTitan, Inc. |
|---|---|---|
| Market Cap | 11.25B | 10.18B |
| Revenue | 4.73B | 771.88M |
| EBITDA | 671.69M | -141.04M |
| EBIT | 544.58M | -221.26M |
| Net Income | 454.53M | -239.09M |
| EPS | 7.93 | -8.53 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
The income statements reveal contrasting performances between EPAM and ServiceTitan in their most recent fiscal years. EPAM experienced stable revenue growth, reaching 4.73B, with a net income of 454.53M, indicating healthy profit margins. Conversely, ServiceTitan reported a substantial loss, with revenues at 771.88M and a net income deficit of 239.09M. The negative EBITDA and EBIT figures for ServiceTitan suggest operational challenges, contrasting sharply with EPAM’s profitability. This divergence may reflect differing business models and market conditions, which investors should consider when evaluating potential investments.
Financial Ratios Comparison
The table below compares the most recent financial ratios for EPAM Systems, Inc. (EPAM) and ServiceTitan, Inc. (TTAN), providing a snapshot of their financial health and operational efficiency.
| Metric | EPAM | TTAN |
|---|---|---|
| ROE | 12.52% | -16.44% |
| ROIC | 10.67% | -14.25% |
| P/E | 29.47 | -18.12 |
| P/B | 3.69 | 2.98 |
| Current Ratio | 2.96 | 3.74 |
| Quick Ratio | 2.96 | 3.74 |
| D/E | 0.045 | 0.114 |
| Debt-to-Assets | 3.44% | 9.35% |
| Interest Coverage | N/A | N/A |
| Asset Turnover | 0.99 | 0.44 |
| Fixed Asset Turnover | 14.07 | 9.57 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
EPAM demonstrates robust performance with a solid ROE and ROIC, indicating effective use of equity and capital. In contrast, TTAN’s negative ratios reflect significant operational challenges, particularly in profitability. The higher debt ratios for TTAN raise concerns over financial leverage, while EPAM maintains a conservative approach. Overall, EPAM appears to be the stronger investment candidate, while TTAN may require closer scrutiny given its current financial difficulties.
Dividend and Shareholder Returns
EPAM Systems, Inc. does not pay dividends, reflecting a strategy focused on reinvestment for growth rather than shareholder payouts. The firm has utilized share buybacks to enhance value, though its free cash flow coverage supports this approach. On the other hand, ServiceTitan, Inc. similarly refrains from dividend payments, prioritizing capital for expansion and innovation despite negative profit margins. Both companies’ strategies may foster long-term value creation, yet the absence of dividends introduces risks related to profitability and cash flow sustainability.
Strategic Positioning
EPAM Systems, Inc. holds a strong market share in the Information Technology Services sector, focusing on digital platform engineering and software development. With a market cap of $11.25B, it faces competitive pressure from emerging technological solutions and established players. Meanwhile, ServiceTitan, Inc., with a market cap of $10.18B, specializes in field service management software, positioning itself uniquely against competitors in the software application industry. Both companies must continuously adapt to technological disruptions to maintain their competitive edge.
Stock Comparison
Over the past year, the stock price dynamics of EPAM Systems, Inc. (EPAM) and ServiceTitan, Inc. (TTAN) reveal significant movements, with EPAM experiencing a notable downturn while TTAN has shown resilience despite recent fluctuations.
Trend Analysis
EPAM Systems, Inc. (EPAM)
- Percentage Change: Over the past year, EPAM has experienced a price decline of -33.94%.
- Trend Direction: This indicates a bearish trend.
- Notable Highs/Lows: The stock reached a high of $311.98 and a low of $142.38.
- Acceleration Status: The trend shows acceleration, suggesting that the downward momentum is increasing.
- Volatility: The standard deviation is 45.25, indicating a high level of price volatility.
ServiceTitan, Inc. (TTAN)
- Percentage Change: Over the past year, TTAN’s stock has increased by 9.22%.
- Trend Direction: This reflects a bullish trend.
- Notable Highs/Lows: The stock’s highest price was $129.26, while the lowest was $85.07.
- Acceleration Status: The trend is currently in deceleration, which suggests a slowdown in upward momentum.
- Volatility: The standard deviation is 10.21, indicating relatively lower volatility compared to EPAM.
In summary, EPAM’s bearish trend coupled with high volatility highlights a challenging environment, while TTAN’s bullish trend, despite recent deceleration, reflects a more stable investment option.
Analyst Opinions
Recent recommendations indicate a strong consensus for EPAM Systems, Inc. (EPAM), with an “A+” rating from multiple analysts, reflecting solid performance across key metrics such as return on equity and assets. Analysts emphasize its robust financial health and growth potential, suggesting a “buy” for the current year. Conversely, ServiceTitan, Inc. (TTAN) has received a “C+” rating, indicating concerns regarding its profitability and cash flow. Analysts are cautious, recommending a “hold” as they await improvements. Overall, the consensus leans toward a “buy” for EPAM and a “hold” for TTAN.
Stock Grades
In analyzing the stock ratings for EPAM Systems, Inc. and ServiceTitan, Inc., we can see a clear picture of how reputable grading companies view these stocks.
EPAM Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-09 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Barclays | maintain | Overweight | 2025-05-12 |
| Needham | maintain | Buy | 2025-05-09 |
| Guggenheim | maintain | Buy | 2025-05-09 |
| Piper Sandler | maintain | Neutral | 2025-05-09 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-09 |
| Stifel | maintain | Buy | 2025-05-02 |
ServiceTitan, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Overweight | 2025-12-05 |
| Morgan Stanley | maintain | Equal Weight | 2025-12-05 |
| TD Cowen | maintain | Buy | 2025-12-05 |
| BMO Capital | maintain | Outperform | 2025-12-05 |
| BMO Capital | maintain | Outperform | 2025-11-20 |
| Piper Sandler | maintain | Overweight | 2025-09-19 |
| Canaccord Genuity | maintain | Buy | 2025-09-19 |
| Wells Fargo | maintain | Overweight | 2025-09-19 |
| Stifel | maintain | Buy | 2025-09-19 |
| Citigroup | maintain | Neutral | 2025-09-09 |
Overall, both companies maintain a solid outlook from multiple reputable grading agencies, with EPAM showing consistent “Outperform” and “Overweight” ratings, while ServiceTitan also holds strong with multiple “Buy” and “Outperform” recommendations. This trend suggests a positive sentiment among analysts regarding the future performance of these stocks.
Target Prices
The current consensus target prices for EPAM Systems, Inc. and ServiceTitan, Inc. indicate strong analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| EPAM Systems, Inc. | 185 | 175 | 180 |
| ServiceTitan, Inc. | 145 | 125 | 135.63 |
For EPAM, the stock price of 203.63 is currently above the consensus target of 180, suggesting potential overvaluation. ServiceTitan’s price of 109.575 is below its consensus of 135.63, indicating an opportunity for growth according to analysts.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of EPAM Systems, Inc. (EPAM) and ServiceTitan, Inc. (TTAN) based on the most recent data.
| Criterion | EPAM Systems (EPAM) | ServiceTitan (TTAN) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Positive margins: 9.6% | Negative margins: -30.9% |
| Innovation | Strong R&D focus | Emerging technology |
| Global presence | Operates globally | Primarily US market |
| Market Share | 3.1B revenue | 0.4B revenue |
| Debt level | Low debt: 4.4% | Higher debt: 10.2% |
Key takeaways indicate that while EPAM showcases strong profitability and low debt levels, ServiceTitan struggles with profitability but has a growing presence in the technology space.
Risk Analysis
In the following table, I outline the key risks facing two technology companies, EPAM Systems, Inc. (EPAM) and ServiceTitan, Inc. (TTAN), based on the most recent data available.
| Metric | EPAM | TTAN |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks. EPAM’s exposure to geopolitical tensions and varying market conditions could affect its performance. TTAN, with its current operational challenges indicated by negative margins, presents a higher risk profile, particularly given its reliance on cash flow and profitability.
Which one to choose?
When comparing EPAM Systems, Inc. (EPAM) and ServiceTitan, Inc. (TTAN), the fundamentals present a clear divergence in performance. EPAM exhibits strong financial health with a market cap of approximately $13.4B, a robust net profit margin of 9.6%, and an A+ rating, indicating high investor confidence. Its recent stock trend shows a bearish pattern with a price drop of 33.94% over the past year but a recent uptick of 30.15%. Conversely, TTAN struggles with a C+ rating and a negative net profit margin of -30.9%, reflecting operational challenges and a market cap of roughly $4.3B.
Investors focused on growth and stability may prefer EPAM, while those willing to engage with riskier investments might find potential in TTAN’s lower valuations. However, be cautious of TTAN’s current operational losses and the competitive landscape.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of EPAM Systems, Inc. and ServiceTitan, Inc. to enhance your investment decisions:
