In the ever-evolving landscape of technology, two companies stand out for their innovative approaches in the software application industry: ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD). While both companies operate within the same sector, they cater to different market needs—ServiceTitan focuses on field service management, whereas PagerDuty specializes in digital operations management. This article will delve into their unique strategies and performances, helping you determine which company might be the most compelling investment opportunity for your portfolio.
Table of contents
Company Overview
ServiceTitan, Inc. Overview
ServiceTitan, Inc. is a leading software provider in the field service management sector, focused on optimizing operations for residential and commercial service businesses. Founded in 2008 by Ara Mahdessian and Vahe Kuzoyan, the company has carved a niche in the technology sector by providing an integrated platform that streamlines the installation, maintenance, and servicing of essential infrastructure. With a market capitalization of approximately $10.14B and a current stock price of $109.06, ServiceTitan has demonstrated robust growth, underscored by a 14.09% price change recently. The company’s commitment to empowering service companies with innovative solutions positions it favorably in a competitive landscape.
PagerDuty, Inc. Overview
Founded in 2009, PagerDuty, Inc. operates a digital operations management platform that serves a diverse range of industries, including technology, telecommunications, and financial services. The company specializes in collecting and analyzing digital signals from various software-enabled systems, leveraging advanced machine learning algorithms to enhance operational efficiency. With a market cap of around $1.11B and a share price of $12.08, PagerDuty has maintained a steady presence since its IPO in 2019. The firm’s innovative approach to incident management and service reliability makes it a key player in the software application industry.
Key similarities and differences
Both ServiceTitan and PagerDuty operate in the software application industry, focusing on enhancing operational efficiencies for their clients. However, their business models differ significantly. ServiceTitan centers on field service management for home and commercial services, while PagerDuty focuses on digital operations management across multiple sectors. This distinction highlights their unique market positions and customer bases.
Income Statement Comparison
The following table compares the income statements of ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) for the fiscal year 2025, providing insights into their financial performance.
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Cap | 10.14B | 1.11B |
| Revenue | 771.88M | 467.50M |
| EBITDA | -141.04M | -11.89M |
| EBIT | -221.26M | -32.50M |
| Net Income | -239.09M | -42.74M |
| EPS | -8.53 | -0.59 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In 2025, ServiceTitan and PagerDuty both reported significant revenue, but ServiceTitan had a higher revenue of 771.88M compared to PagerDuty’s 467.50M. However, both companies experienced negative net income, with ServiceTitan reporting -239.09M and PagerDuty -42.74M. The operating margins for both companies remained under pressure, indicating ongoing challenges in cost management. Despite the revenue growth, ServiceTitan’s negative EBITDA suggests challenges in operational efficiency, while PagerDuty’s slight EBITDA loss reflects its ongoing investment in growth. Overall, both companies are navigating a difficult financial landscape, emphasizing the need for strategic adjustments moving forward.
Financial Ratios Comparison
In this section, I provide a comparative analysis of the most recent financial ratios for ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) to assist you in evaluating their financial health.
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| ROE | -16.44% | -32.92% |
| ROIC | -14.25% | -10.07% |
| P/E | N/A | N/A |
| P/B | 2.98 | 13.12 |
| Current Ratio | 3.74 | 1.87 |
| Quick Ratio | 3.74 | 1.87 |
| D/E | 0.11 | 3.57 |
| Debt-to-Assets | 9.35% | 50.00% |
| Interest Coverage | -14.82 | -6.46 |
| Asset Turnover | 0.44 | 0.50 |
| Fixed Asset Turnover | 9.57 | 16.61 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Both companies exhibit concerning financial health, characterized by negative return ratios (ROE and ROIC), indicating inefficiencies in generating profits. ServiceTitan shows a stronger liquidity position with a higher current and quick ratio, suggesting better short-term solvency compared to PagerDuty. However, PagerDuty has a significantly higher debt-to-equity ratio, raising concerns about financial leverage. Overall, both companies need to address their negative margins and high debt levels to improve investor confidence.
Dividend and Shareholder Returns
Both ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) do not pay dividends, reflecting their current reinvestment strategies aimed at fostering long-term growth. TTAN shows negative net income and unsustainable margins, indicating a high-risk profile. Similarly, PD’s focus on growth amid negative profitability reinforces this trend. However, both companies engage in share buybacks, which may provide some shareholder value. Ultimately, their strategies suggest a focus on long-term value creation, albeit with elevated risk.
Strategic Positioning
In the software application market, ServiceTitan, Inc. (TTAN) holds a significant market share with a market cap of $10.14B, showcasing strong growth potential post-IPO. Meanwhile, PagerDuty, Inc. (PD) operates in a competitive landscape with a market cap of $1.11B, facing pressure from emerging digital operations platforms. Both companies must navigate technological disruptions while leveraging their unique strengths to maintain relevance and drive innovation amidst intensifying competition.
Stock Comparison
In this section, I will analyze the weekly stock price movements of ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) over the past year, highlighting key dynamics and price fluctuations that could inform your investment decisions.
Trend Analysis
For ServiceTitan, Inc. (TTAN), the overall price change over the past year is +9.68%, indicating a bullish trend. Despite this positive movement, I observe a recent decline of -5.02% from September 21, 2025, to December 7, 2025, coupled with a standard deviation of 8.37, suggesting some volatility. The stock reached a notable high of 129.26 and a low of 85.07, reflecting that the trend is currently in a state of deceleration.
Conversely, PagerDuty, Inc. (PD) has experienced a significant overall price change of -53.96%, representing a bearish trend. The recent performance shows a further decrease of -26.01% during the same timeframe (September 21, 2025, to December 7, 2025) with a lower standard deviation of 1.46, indicating less volatility compared to TTAN. The stock’s highest price was 26.23 and the lowest was 12.00, confirming that the trend is also decelerating.
As an investor, it is crucial to weigh these trends and their associated risks before making any decisions regarding your portfolio.
Analyst Opinions
Recent analyses of ServiceTitan, Inc. (TTAN) indicate a cautious stance, with a rating of C+ from analysts due to low scores in discounted cash flow and return on equity. Conversely, PagerDuty, Inc. (PD) has received a strong A- rating, praised for its robust financial metrics, particularly in discounted cash flow and return on equity. This reflects a consensus of a buy recommendation for PD, while TTAN leans towards a hold. As an investor, I recommend approaching TTAN with caution while considering PD for potential inclusion in your portfolio.
Stock Grades
In reviewing the latest stock ratings, we find strong support for both ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) from reputable grading companies.
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 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | maintain | Outperform | 2025-11-26 |
| Craig-Hallum | downgrade | Hold | 2025-11-26 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-26 |
| TD Cowen | maintain | Buy | 2025-11-26 |
| Truist Securities | maintain | Buy | 2025-11-19 |
| Baird | maintain | Neutral | 2025-09-04 |
| Canaccord Genuity | maintain | Buy | 2025-09-04 |
| RBC Capital | maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| Truist Securities | maintain | Buy | 2025-05-30 |
Overall, both companies exhibit a solid performance in their grades, with multiple maintain ratings indicating confidence from analysts. Notably, PagerDuty has seen a downgrade from one of its analysts, which investors may want to consider while evaluating their investment strategy.
Target Prices
The consensus target prices for the companies analyzed indicate positive growth expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceTitan, Inc. | 145 | 125 | 135.63 |
| PagerDuty, Inc. | 19 | 15 | 16.75 |
For ServiceTitan, Inc. (TTAN), the current price of 109.06 is significantly below the consensus of 135.63, suggesting an upside potential. Conversely, PagerDuty, Inc. (PD) is trading at 12.08, lower than the consensus of 16.75, indicating a favorable outlook as well.
Strengths and Weaknesses
The following table outlines key strengths and weaknesses of ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) based on recent data:
| Criterion | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Negative margins | Negative margins |
| Innovation | High | High |
| Global presence | Limited | Strong |
| Market Share | Growing | Established |
| Debt level | Low (0.09) | High (0.50) |
Key takeaways indicate that while both companies exhibit strong innovation, ServiceTitan shows lower debt levels, making it potentially less risky. However, PagerDuty’s global presence provides considerable growth opportunities.
Risk Analysis
In this section, I will outline the various risks associated with ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) to help you make informed investment decisions.
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
The most significant risks for both companies include high operational risks due to their reliance on technology and market dynamics. Recent economic fluctuations and regulatory changes could further impact their performance.
Which one to choose?
When comparing ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD), both companies exhibit significant challenges on the financial front. TTAN has a market cap of 4.33B and shows high gross profit margins at 64.9%, but struggles with negative net profit margins (-30.9%) and overall low profitability scores, reflected in its C+ rating. Conversely, PD, with a market cap of 1.70B, has a higher gross profit margin of 82.9% and a stronger A- rating, indicating better financial health despite its negative earnings.
While TTAN’s stock trend is bullish, PD’s performance has been bearish, falling over 53.96% recently. For investors focused on growth, PD may appear more appealing due to its higher margins and ratings, while those prioritizing stability might consider TTAN, albeit with caution regarding its profitability issues.
Specific risks include market volatility affecting both firms, competition in their respective sectors, and ongoing challenges with profitability.
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 ServiceTitan, Inc. and PagerDuty, Inc. to enhance your investment decisions:
