In the fast-evolving tech landscape, the battle between titans of enterprise software continues to heat up. This article compares ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN), both key players in the software application sector. With overlapping market focus and innovative strategies aimed at streamlining operations, these companies are redefining service management in their respective domains. Join me as we explore which of these two companies presents the most compelling investment opportunity for savvy investors.
Table of contents
Company Overview
ServiceNow, Inc. Overview
ServiceNow, Inc. is a leader in enterprise cloud computing solutions, specializing in workflow automation across various sectors, including healthcare, finance, and IT services. The company’s flagship Now platform integrates artificial intelligence, machine learning, and robotic process automation, enabling organizations to streamline their operations and enhance service delivery. Founded in 2004 and headquartered in Santa Clara, California, ServiceNow focuses on IT service management, risk management, and customer service solutions, ensuring that businesses can manage their processes efficiently and securely. With a market capitalization of approximately $171.3B, ServiceNow is well-positioned to capitalize on the growing demand for automation and digital transformation.
ServiceTitan, Inc. Overview
ServiceTitan, Inc. specializes in providing software solutions for field service management, targeting trades such as plumbing, electrical, and HVAC. Founded in 2008 and based in Glendale, California, ServiceTitan equips businesses with tools to streamline their operations, from job scheduling to customer relationship management. The platform enhances efficiency and profitability for service businesses, which are often crucial to local economies. With a market capitalization of around $8.3B, ServiceTitan is emerging as a key player in the software application industry, catering primarily to small and medium-sized enterprises.
Key similarities between ServiceNow and ServiceTitan include their focus on software application solutions within the technology sector and their commitment to enhancing operational efficiency for clients. However, their business models diverge significantly: ServiceNow targets a broader range of industries with comprehensive enterprise solutions, while ServiceTitan is focused specifically on the field service sector, providing tailored applications for tradespeople.
Income Statement Comparison
Below is a comparison of key income statement metrics between ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) for the most recent fiscal year.
| Metric | ServiceNow, Inc. (NOW) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| Revenue | 10.98B | 771.88M |
| EBITDA | 2.23B | -141.04M |
| EBIT | 1.76B | -221.26M |
| Net Income | 1.43B | -239.09M |
| EPS | 6.92 | -8.53 |
Interpretation of Income Statement
In the most recent year, ServiceNow reported a significant revenue increase to 10.98B, representing a growth of 22% compared to the previous year. Its net income of 1.43B indicates strong profitability, though its EPS decreased slightly from 8.48 to 6.92 due to rising expenses. In contrast, ServiceTitan experienced a decline, with a net income loss of 239.09M, reflecting ongoing challenges in achieving profitability. The contrasting performance highlights ServiceNow’s solid growth trajectory against ServiceTitan’s operational struggles, underscoring the importance of robust revenue generation and cost management in enhancing investor confidence.
Financial Ratios Comparison
Below is a comparative table showcasing the most recent Revenue and Ratios for ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN).
| Metric | NOW | 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
The comparison reveals that ServiceNow demonstrates stronger profitability and efficiency metrics compared to ServiceTitan, which is currently operating at a loss, indicated by negative ROE and P/E ratios. ServiceNow’s current and quick ratios suggest good liquidity, whereas ServiceTitan’s significantly high current ratio indicates potential inefficiencies in asset management. Investors should be cautious with TTAN due to its negative margins and unstable profitability.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, reflecting its focus on growth and reinvestment strategies. The absence of dividend payouts allows management to allocate capital toward innovation and expansion, which may enhance long-term shareholder value. Furthermore, NOW engages in share buybacks, preserving shareholder equity. In contrast, ServiceTitan, Inc. (TTAN) also does not distribute dividends, primarily due to negative net income and ongoing investments in product development. This strategy aligns with the aim of building sustainable value, despite the associated risks.
Strategic Positioning
ServiceNow, Inc. (NOW) commands a significant market share in enterprise cloud solutions, particularly with its Now platform, which integrates various automation tools and services. With a market cap of $171.3B, it faces competitive pressure from ServiceTitan, Inc. (TTAN), which focuses on field service management and has a market cap of $8.3B. Both companies are navigating technological disruptions in the software application industry, necessitating continuous innovation to maintain their competitive edge.
Stock Comparison
Over the past year, the stock prices of ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) have exhibited notable fluctuations, reflecting the companies’ varying market dynamics and investor sentiment.
Trend Analysis
For ServiceNow, Inc. (NOW), the overall percentage change over the past year is +22.06%, indicating a bullish trend. However, the recent trend from September 14, 2025, to November 30, 2025, shows a decline of -11.16%, suggesting a deceleration in momentum. The stock reached a high of 1124.98 and a low of 656.93, with a standard deviation of 116.38.
In contrast, ServiceTitan, Inc. (TTAN) has experienced a percentage change of -10.51% over the past year, marking a bearish trend. The recent period from September 14, 2025, to November 30, 2025, reflects a sharper decline of -21.06%, also indicating deceleration. The stock’s highest price was 129.26, and it fell to a low of 85.07, with a standard deviation of 10.28.
Both stocks have shown increasing volume trends, with NOW demonstrating a buyer percentage of 51.31% overall, while TTAN recorded a lower buyer percentage of 46.1%.
Analyst Opinions
Recent analyst recommendations for ServiceNow, Inc. (NOW) indicate a consensus rating of “Buy” with a score of B, primarily due to strong scores in discounted cash flow, return on equity, and return on assets. Analysts highlight its robust financial health, though its price-to-earnings ratio raises concerns. Conversely, ServiceTitan, Inc. (TTAN) has a consensus rating of “Sell” with a C- rating, primarily due to its low scores across multiple metrics, pointing to operational challenges. Analysts recommend caution with TTAN’s future prospects.
Stock Grades
I’m here to provide you with the latest stock grades for two companies: ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN). These grades are sourced from reputable grading companies, ensuring you have reliable information for your investment decisions.
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 |
|---|---|---|---|
| BMO Capital | maintain | Outperform | 2025-11-20 |
| Wells Fargo | maintain | Overweight | 2025-09-19 |
| Stifel | maintain | Buy | 2025-09-19 |
| Canaccord Genuity | maintain | Buy | 2025-09-19 |
| Piper Sandler | maintain | Overweight | 2025-09-19 |
| Citigroup | maintain | Neutral | 2025-09-09 |
| Piper Sandler | maintain | Overweight | 2025-09-05 |
| Needham | maintain | Buy | 2025-09-05 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-05 |
| Truist Securities | maintain | Buy | 2025-09-05 |
Both companies show a consistent trend of maintaining strong grades, with a notable presence of “Overweight” and “Buy” ratings. Investors can feel encouraged by the overall positive sentiment surrounding these stocks, highlighting their potential for continued growth.
Target Prices
For ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN), I have gathered reliable target price data from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 860 | 1172.71 |
| ServiceTitan, Inc. | 145 | 115 | 132.57 |
The target consensus for ServiceNow, Inc. is 1172.71, indicating a strong expectation for growth compared to its current price of 825.31. Similarly, ServiceTitan, Inc. has a consensus of 132.57, suggesting potential upside from its current price of 89.49.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN) based on recent performance metrics.
| Criterion | ServiceNow, Inc. (NOW) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 12.97%) | Negative (Net Margin: -30.98%) |
| Innovation | High | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Leading | Emerging |
| Debt level | Low (Debt to Equity: 0.24) | Low (Debt to Equity: 0.11) |
Key takeaways show that ServiceNow has a strong market presence and profitability, making it a favorable option for investors. In contrast, ServiceTitan is still in a growth phase, reflecting challenges in profitability.
Risk Analysis
Below is a summary of 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 |
Both companies face notable risks, with ServiceTitan experiencing higher operational and market risks due to its recent financial challenges, evidenced by a negative net profit margin of -30.98%. ServiceNow, while more stable, remains susceptible to market fluctuations in the tech sector.
Which one to choose?
In comparing ServiceNow, Inc. (NOW) and ServiceTitan, Inc. (TTAN), it is clear that NOW presents a more attractive investment opportunity. ServiceNow has demonstrated strong financial health, reflected in a gross profit margin of 79% and a robust net profit margin of 13%. Additionally, its analyst rating is a solid “B,” with a bullish stock trend that has seen a 22% price increase over the past year. In contrast, ServiceTitan struggles with a C- rating and a bearish trend, marked by a 10.5% decline in stock price, alongside negative margins.
For growth-focused investors, NOW is the preferable choice, while those seeking stability may find value in TTAN’s lower market cap and potential turnaround. However, investors should remain cautious of the competitive landscape and operational risks inherent in the technology sector.
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:
