In the ever-evolving landscape of software applications, ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) stand out as significant players with distinct offerings. While both companies operate within the software industry, they cater to different market needs—ServiceNow focuses on enterprise cloud computing solutions, while ServiceTitan specializes in field service management. This comparison explores their innovative strategies and market positions, aiming to help you determine which company might be the more compelling investment choice.
Table of contents
Company Overview
ServiceNow, Inc. Overview
ServiceNow, Inc. (NOW) is a leading provider of enterprise cloud computing solutions, focused on automating and managing services across various sectors. With a market capitalization of approximately $177B, ServiceNow aims to streamline workflows and enhance productivity through advanced technologies such as artificial intelligence and machine learning. Its platform supports a wide range of applications, from IT service management to governance, risk, and compliance solutions. Founded in 2004 and headquartered in Santa Clara, California, the company serves diverse industries, including healthcare, finance, and telecommunications, leveraging a direct sales team and strategic partnerships to expand its reach globally.
ServiceTitan, Inc. Overview
ServiceTitan, Inc. (TTAN), with a market cap of around $10.2B, specializes in field service management software tailored for residential and commercial sectors. Established in 2008 and based in Glendale, California, ServiceTitan’s mission revolves around facilitating the installation and maintenance of infrastructure systems through its comprehensive platform. The company empowers service professionals by providing tools that enhance efficiency, management, and customer engagement. As a relatively newer player, ServiceTitan is rapidly gaining traction, particularly in the home service industry.
Key similarities and differences
Both ServiceNow and ServiceTitan operate within the software application industry, focusing on improving operational efficiencies. However, while ServiceNow targets a broad spectrum of enterprise services across various industries, ServiceTitan concentrates specifically on the field service sector, catering to the unique needs of residential and commercial service providers.
Income Statement Comparison
The following table compares the latest income statements of ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) for their respective fiscal years.
| Metric | ServiceNow, Inc. (NOW) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| Market Cap | 177B | 10.2B |
| Revenue | 10.98B | 772M |
| EBITDA | 2.23B | -141M |
| EBIT | 1.76B | -221M |
| Net Income | 1.43B | -240M |
| EPS | 6.92 | -8.53 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
ServiceNow demonstrated robust growth in revenue, increasing from 8.97B in 2023 to 10.98B in 2024, while its net income slightly decreased from 1.73B to 1.43B, indicating a tightening of profit margins. In contrast, ServiceTitan showed significant challenges, posting a net loss of 240M in 2025, a notable decline from its loss of 195M in the previous year. This reflects ongoing operational struggles, with increasing costs overshadowing revenue growth, necessitating careful consideration for potential investors given the volatility in its earnings and margins.
Financial Ratios Comparison
The table below provides a comparative analysis of the most recent financial metrics for ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN). This will help in evaluating their financial health and operational efficiency.
| Metric | ServiceNow, Inc. (NOW) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| ROE | 14.83% | -16.44% |
| ROIC | 9.22% | -14.25% |
| P/E | 153.13 | -18.12 |
| P/B | 22.71 | 2.98 |
| Current Ratio | 1.10 | 3.74 |
| Quick Ratio | 1.10 | 3.74 |
| D/E | 0.24 | 0.11 |
| Debt-to-Assets | 11.18% | 9.35% |
| Interest Coverage | 59.30 | -14.82 |
| Asset Turnover | 0.54 | 0.44 |
| Fixed Asset Turnover | 4.47 | 9.57 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
ServiceNow demonstrates strong profitability with a solid ROE and ROIC compared to ServiceTitan, which is facing negative margins and returns. The high P/E and P/B ratios for ServiceNow suggest market confidence, while ServiceTitan’s negative P/E indicates financial distress. Although ServiceTitan has a better current and quick ratio, indicating liquidity, its operational metrics raise concerns about sustainability. Investors should be cautious with TTAN due to its negative profitability indicators.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, as evidenced by a 0% payout ratio. Instead, it focuses on reinvesting earnings for growth, which aligns with its high growth trajectory. The company has a history of share buybacks, reflecting a commitment to returning value to shareholders. Conversely, ServiceTitan, Inc. (TTAN) also does not distribute dividends and is currently in a challenging financial position, with negative net income. This strategy may prioritize growth but poses risks, particularly in maintaining shareholder confidence. Overall, both companies’ approaches highlight a focus on long-term value creation, albeit with differing financial health implications.
Strategic Positioning
In the competitive landscape of the software application industry, ServiceNow, Inc. (NOW) leads with a substantial market cap of $177B, offering a comprehensive suite of enterprise cloud solutions. Its innovative approach to workflow automation and IT service management positions it as a benchmark in the sector. In contrast, ServiceTitan, Inc. (TTAN), with a market cap of $10B, is carving out its niche in field service management but faces significant competitive pressure from established players like NOW. Both companies must navigate technological disruptions to maintain their market positioning.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics of ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) over the past year, focusing on key price changes and trends that may influence investor decisions.
Trend Analysis
ServiceNow, Inc. (NOW): Over the past year, NOW has experienced a price change of +17.06%, indicating a bullish trend. The stock reached a notable high of 1124.98 and a low of 656.93, with a standard deviation of 114.64 reflecting significant volatility. However, in the recent period (from September 21, 2025, to December 7, 2025), the stock has seen a decline of -11.19%, suggesting a deceleration in its upward momentum.
ServiceTitan, Inc. (TTAN): TTAN has recorded a price increase of +9.58% over the past year, also indicating a bullish trend. The stock’s highest price was 129.26, while the lowest was 85.07, with a standard deviation of 10.21, showing moderate volatility. In the recent period, TTAN has declined by -5.11%, which signifies a deceleration in its growth trajectory.
In summary, both stocks exhibit bullish trends overall, but recent declines indicate a potential shift in momentum that investors should monitor closely.
Analyst Opinions
Recent analyst recommendations for ServiceNow, Inc. (NOW) suggest a “Buy” rating, with analysts highlighting strong return on equity (4) and return on assets (5) scores, indicating effective management and profitability. ServiceTitan, Inc. (TTAN), on the other hand, has received a “Hold” rating, with concerns over low discounted cash flow and return on equity scores (1). Consensus for ServiceNow is firmly in the “Buy” category, while ServiceTitan remains under scrutiny with a consensus leaning towards “Hold” for the current year.
Stock Grades
I have gathered the latest stock grades from reputable grading companies for two companies, ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN). Below you will find a detailed breakdown of each company’s grades.
ServiceNow, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Overweight | 2025-10-30 |
| Canaccord Genuity | maintain | Buy | 2025-10-30 |
| TD Cowen | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| Barclays | maintain | Overweight | 2025-10-30 |
| Citigroup | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-14 |
| Morgan Stanley | upgrade | Overweight | 2025-09-24 |
| JMP Securities | maintain | Market Outperform | 2025-08-04 |
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 show a consistent trend of maintaining strong grades, with ServiceNow receiving multiple “Overweight” and “Buy” ratings, indicating solid confidence from analysts. Similarly, ServiceTitan has a mix of “Overweight,” “Outperform,” and “Buy” ratings, suggesting a positive outlook among analysts.
Target Prices
The current target price consensus for ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) suggests a positive outlook from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 860 | 1172.71 |
| ServiceTitan, Inc. | 145 | 125 | 135.63 |
For ServiceNow, the consensus target price of 1172.71 indicates a significant upside potential compared to its current price of 852.66. Similarly, ServiceTitan’s consensus target of 135.63 suggests an optimistic outlook versus its current price of 109.42. Overall, analysts appear to favor both stocks, projecting potential gains.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) based on recent financial data.
| Criterion | ServiceNow, Inc. | ServiceTitan, Inc. |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (12.97%) | Negative (-30.98%) |
| Innovation | High | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Significant | Growing |
| Debt level | Low (11.18%) | Moderate (9.35%) |
Key takeaways indicate that ServiceNow has a robust profitability and global presence, while ServiceTitan is currently facing challenges in profitability but has potential for growth in market share.
Risk Analysis
The following table outlines the key risks associated with ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN):
| Metric | ServiceNow, Inc. | ServiceTitan, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
In evaluating the risks, ServiceTitan, Inc. appears to face higher operational and market risks, primarily due to its recent financial struggles, including a negative net profit margin of -30.98% in 2025. This could limit its growth potential and stability, making it a higher-risk investment compared to ServiceNow, which maintains a more stable financial outlook.
Which one to choose?
When comparing ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN), the fundamentals and recent performance reveal significant differences. NOW shows robust financial health with a market cap of 218B, a net profit margin of 12.97%, and a solid rating of B from analysts. Its stock trend is bullish with a price change of +17.06%. In contrast, TTAN struggles with a market cap of only 4.33B, a negative net profit margin of -30.98%, and a C+ rating, indicating more risk.
For growth-focused investors, NOW appears favorable due to its consistent profitability and performance metrics. However, those prioritizing risk management might find TTAN an intriguing option, given its potential for recovery in a niche market.
Risks include competitive pressures and market dependence, particularly for TTAN.
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 ServiceNow, Inc. and ServiceTitan, Inc. to enhance your investment decisions:
