In today’s fast-evolving tech landscape, ServiceTitan, Inc. and SoundHound AI, Inc. stand out as innovative players within the software application industry. ServiceTitan focuses on optimizing field service management for residential and commercial infrastructure, while SoundHound AI pioneers advanced voice AI platforms for conversational experiences. Their shared technological roots and growth potential make this comparison essential. Join me as we explore which company presents the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between ServiceTitan and SoundHound AI by providing an overview of these two companies and their main differences.
ServiceTitan Overview
ServiceTitan, Inc. focuses on software applications supporting field service activities for residential and commercial infrastructure. Founded in 2008 and headquartered in Glendale, CA, ServiceTitan aims to streamline installation, maintenance, and servicing processes. Positioned in the technology sector, it employs over 3,000 people and trades on NASDAQ with a market cap of approximately 8.5B USD.
SoundHound AI Overview
SoundHound AI, Inc. develops voice artificial intelligence platforms to enhance conversational experiences across industries. Based in Santa Clara, CA, the company offers the Houndify suite, including speech recognition and natural language processing tools. With around 840 employees, SoundHound AI operates in the technology sector and has a market cap near 4.7B USD, listed on NASDAQ since 2022.
Key similarities and differences
Both companies operate in the software application industry within the technology sector, focusing on innovative solutions for business needs. ServiceTitan targets field service management, while SoundHound AI specializes in voice AI platforms. Their employee bases differ significantly, with ServiceTitan being larger. Market capitalization also varies, with ServiceTitan nearly doubling SoundHound AI’s valuation, reflecting differences in scale and market focus.
Income Statement Comparison
Below is the income statement comparison for ServiceTitan, Inc. and SoundHound AI, Inc. for their most recent fiscal years, highlighting key financial metrics.
| Metric | ServiceTitan, Inc. (TTAN) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Market Cap | 8.5B | 4.7B |
| Revenue | 772M | 85M |
| EBITDA | -141M | -329M |
| EBIT | -221M | -348M |
| Net Income | -239M | -351M |
| EPS | -8.53 | -1.04 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
ServiceTitan, Inc.
ServiceTitan showed strong revenue growth from 2023 to 2025, with a 65.02% increase overall and 25.64% in the last year. Gross margins remained favorable at 64.9%, indicating efficient cost control. However, net income stayed negative, though it improved by 11.29% overall. The 2025 fiscal year saw slower EBIT and EPS declines, with net margin slightly improving but still negative.
SoundHound AI, Inc.
SoundHound’s revenue expanded significantly by 550.63% over 2020-2024, including 84.62% growth in the last year. Despite this, net income remained deeply negative, worsening overall by 371.3%. Gross margin was stable at 48.86%, but operating and net margins were heavily unfavorable. The 2024 year reflected deteriorating EBIT and net margin with rising expenses, indicating continued operational challenges.
Which one has the stronger fundamentals?
ServiceTitan demonstrates more balanced fundamentals, with consistent revenue growth, improving net margin, and favorable gross margin. SoundHound’s rapid revenue growth is offset by substantial losses, high interest expenses, and poor net margins. While both companies face profitability challenges, ServiceTitan presents a relatively stronger income statement profile based on margin stability and income trends.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for ServiceTitan, Inc. (TTAN) and SoundHound AI, Inc. (SOUN) based on their most recent fiscal year data.
| Ratios | ServiceTitan, Inc. (TTAN) 2025 | SoundHound AI, Inc. (SOUN) 2024 |
|---|---|---|
| ROE | -16.4% | -191.9% |
| ROIC | -14.1% | -68.1% |
| P/E | -18.1 | -19.1 |
| P/B | 2.98 | 36.76 |
| Current Ratio | 3.74 | 3.77 |
| Quick Ratio | 3.74 | 3.77 |
| D/E (Debt to Equity) | 0.11 | 0.02 |
| Debt-to-Assets | 9.35% | 0.79% |
| Interest Coverage | -14.8 | -28.1 |
| Asset Turnover | 0.44 | 0.15 |
| Fixed Asset Turnover | 9.57 | 14.28 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
ServiceTitan, Inc.
ServiceTitan’s ratios show mixed strength with several unfavorable metrics such as negative net margin (-30.98%), return on equity (-16.44%), and interest coverage (-14.26), indicating profitability and operational challenges. The company maintains a solid quick ratio (3.74) and low debt-to-assets (9.35%). It does not pay dividends, likely reflecting reinvestment or growth priorities without share buybacks.
SoundHound AI, Inc.
SoundHound’s financial ratios are predominantly weak, with a steep negative net margin (-414.06%) and return on equity (-191.99%) signaling significant losses. Its weighted average cost of capital (WACC) is high (17.71%), adding pressure. Despite a strong quick ratio (3.77) and low debt ratio (0.79%), it also pays no dividends, consistent with a likely focus on R&D and expansion over shareholder returns.
Which one has the best ratios?
Comparing both, ServiceTitan presents a slightly more balanced profile with fewer unfavorable ratios (50%) versus SoundHound’s 64.29%. ServiceTitan’s lower debt and better operational metrics contrast with SoundHound’s extreme losses and higher WACC. Neither pays dividends, emphasizing growth or reinvestment; overall, ServiceTitan’s ratios are marginally less unfavorable.
Strategic Positioning
This section compares the strategic positioning of ServiceTitan, Inc. and SoundHound AI, Inc., including market position, key segments, and exposure to technological disruption:
ServiceTitan, Inc.
- Leading in field service software with $8.5B market cap, facing stable competitive pressure.
- Focused on platform and subscription revenues supporting field service infrastructure.
- Moderate exposure as software solutions evolve; disruption risks tied to AI advancements.
SoundHound AI, Inc.
- Developing voice AI platforms with $4.7B market cap, operating in a highly competitive AI market.
- Key segments include hosted services, licensing, and professional services in conversational AI.
- High exposure due to reliance on voice AI technology and continuous innovation demands.
ServiceTitan, Inc. vs SoundHound AI, Inc. Positioning
ServiceTitan adopts a concentrated approach focused on field service platform software, benefiting from a sizable market cap, while SoundHound pursues a diversified AI product suite. ServiceTitan’s scale offers stability; SoundHound faces higher innovation risk but potential growth from expanding AI applications.
Which has the best competitive advantage?
Both companies currently shed value relative to their capital costs. ServiceTitan shows stable but unfavorable returns, while SoundHound’s growing ROIC trend suggests improving profitability, despite a slightly unfavorable moat status.
Stock Comparison
The stock price movements of ServiceTitan, Inc. (TTAN) and SoundHound AI, Inc. (SOUN) over the past 12 months reveal contrasting trading dynamics, with TTAN exhibiting a bearish trend and SOUN showing strong bullish gains despite recent declines.
Trend Analysis
ServiceTitan, Inc. (TTAN) experienced a bearish trend over the past year, with a price decline of 9.22%. The trend showed acceleration, reaching a high of 129.26 and a low of 85.07, alongside elevated volatility (std deviation 9.86).
SoundHound AI, Inc. (SOUN) displayed a bullish trend over the same period, gaining 183.16%. The trend decelerated recently, with a notable price drop of 37.0% in the last two and a half months, and lower volatility (std deviation 4.66).
Comparing both, SOUN delivered the highest market performance with substantial overall gains, contrasting with TTAN’s moderate losses and more volatile price movements.
Target Prices
The consensus target prices for ServiceTitan, Inc. and SoundHound AI, Inc. indicate promising upside potential according to analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceTitan, Inc. | 145 | 117 | 132.44 |
| SoundHound AI, Inc. | 15 | 11 | 13.33 |
Analysts expect ServiceTitan’s stock to rise significantly above its current price of 90.78 USD, while SoundHound AI’s consensus target also suggests moderate upside from its 11.10 USD level.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for ServiceTitan, Inc. and SoundHound AI, Inc.:
Rating Comparison
ServiceTitan, Inc. Rating
- Rating: C-, considered very favorable by analysts.
- Discounted Cash Flow Score: 1, indicating very unfavorable valuation based on cash flow.
- ROE Score: 1, showing very unfavorable efficiency in generating profit from equity.
- ROA Score: 1, reflecting very unfavorable utilization of assets to generate earnings.
- Debt To Equity Score: 3, demonstrating a moderate financial risk profile.
- Overall Score: 1, representing a very unfavorable overall financial standing.
SoundHound AI, Inc. Rating
- Rating: C-, also considered very favorable by analysts.
- Discounted Cash Flow Score: 1, indicating very unfavorable valuation based on cash flow.
- ROE Score: 1, showing very unfavorable efficiency in generating profit from equity.
- ROA Score: 1, reflecting very unfavorable utilization of assets to generate earnings.
- Debt To Equity Score: 4, indicating a favorable financial risk profile with lower reliance on debt.
- Overall Score: 1, representing a very unfavorable overall financial standing.
Which one is the best rated?
Both ServiceTitan and SoundHound share the same overall rating of C- and very unfavorable scores in most financial metrics. SoundHound has a slightly better debt-to-equity score, suggesting a stronger balance sheet risk profile compared to ServiceTitan.
Scores Comparison
The comparison of ServiceTitan and SoundHound AI scores is as follows:
TTAN Scores
- Altman Z-Score: 15.74, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength.
SOUN Scores
- Altman Z-Score: 6.62, also in the safe zone with low bankruptcy risk.
- Piotroski Score: 3, indicating very weak financial strength.
Which company has the best scores?
Based solely on provided data, ServiceTitan has higher Altman Z-Score and Piotroski Score than SoundHound AI, suggesting stronger overall financial health.
Grades Comparison
Here is the detailed grades comparison for ServiceTitan, Inc. and SoundHound AI, Inc.:
ServiceTitan, Inc. Grades
This table shows recent grades from reputable grading firms for ServiceTitan, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Overweight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-11-20 |
| Wells Fargo | Maintain | Overweight | 2025-09-19 |
| Stifel | Maintain | Buy | 2025-09-19 |
| Piper Sandler | Maintain | Overweight | 2025-09-19 |
| Canaccord Genuity | Maintain | Buy | 2025-09-19 |
| Citigroup | Maintain | Neutral | 2025-09-09 |
The overall trend for ServiceTitan shows predominantly positive ratings, with most grades at Buy or better, and stable recommendations maintained over the recent months.
SoundHound AI, Inc. Grades
This table shows recent grades from reputable grading firms for SoundHound AI, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-12-12 |
| DA Davidson | Maintain | Buy | 2025-11-18 |
| Piper Sandler | Maintain | Neutral | 2025-11-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-16 |
| HC Wainwright & Co. | Maintain | Buy | 2025-09-17 |
| Wedbush | Maintain | Outperform | 2025-09-11 |
| DA Davidson | Maintain | Buy | 2025-09-10 |
| Ladenburg Thalmann | Upgrade | Buy | 2025-08-11 |
| Wedbush | Maintain | Outperform | 2025-08-08 |
SoundHound AI’s grades indicate a solid Buy consensus with several upgrades and consistent Buy to Outperform ratings, though some Neutral grades remain.
Which company has the best grades?
Both companies have a consensus Buy rating, but ServiceTitan, Inc. has more frequent and consistent higher-tier grades such as Outperform and Overweight, implying a stronger analyst conviction. This could influence investors looking for steadier confidence signals, while SoundHound AI shows promising upgrades with more mixed Neutral ratings.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for ServiceTitan, Inc. (TTAN) and SoundHound AI, Inc. (SOUN) based on their recent financial and operational data.
| Criterion | ServiceTitan, Inc. (TTAN) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Diversification | Strong product segmentation: Platform $739M, Subscription $566M (2025) | Diverse revenue streams: Hosted Services $57M, Licensing $18M, Professional Service $9M (2024) |
| Profitability | Negative margins: Net margin -31%, ROIC -14%, ROE -16% (2025) | Larger losses: Net margin -414%, ROIC -68%, ROE -192% (2024) |
| Innovation | Moderate innovation with stable asset turnover | High fixed asset turnover (14.28) indicating operational efficiency and innovation potential |
| Global presence | Moderate global reach implied by stable revenues | Growing profitability trend suggests expanding market presence |
| Market Share | Unfavorable MOAT: ROIC below WACC by -19%, value destroying | Slightly unfavorable MOAT: ROIC below WACC by -86%, but improving ROIC trend |
Key takeaways: ServiceTitan shows a more diversified revenue base with better profitability metrics than SoundHound AI, though both companies currently destroy value. SoundHound exhibits promising innovation and improving returns, signaling potential future growth despite current losses. Caution is advised due to persistent negative profitability in both cases.
Risk Analysis
The table below summarizes key risks for ServiceTitan, Inc. (TTAN) and SoundHound AI, Inc. (SOUN) based on their latest financial and market data.
| Metric | ServiceTitan, Inc. (TTAN) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Market Risk | Low beta (-0.85), indicating lower volatility | High beta (2.88), implying high volatility |
| Debt level | Low debt-to-equity (0.11), favorable leverage | Very low debt (0.02), favorable leverage |
| Regulatory Risk | Moderate, typical for US tech sector | Moderate, typical for US tech sector |
| Operational Risk | Negative net margin (-31%), operational inefficiencies | Severely negative net margin (-414%), high operational risk |
| Environmental Risk | Low, standard for software industry | Low, standard for software industry |
| Geopolitical Risk | Moderate, US-based with limited international exposure | Moderate, US-based with limited international exposure |
The most impactful risks are operational losses and market volatility. SoundHound AI faces higher operational risk with a massive net margin loss and elevated market risk due to its high beta. ServiceTitan shows better financial stability but still posts negative profitability metrics, warranting caution. Both companies have low debt, mitigating financial distress risk.
Which Stock to Choose?
ServiceTitan, Inc. (TTAN) shows favorable revenue growth of 25.64% in 2025 and a 65.02% increase over three years, despite negative profitability and a slightly unfavorable global financial ratios evaluation. Its debt levels are low, with a net debt to EBITDA ratio near 2, and the overall rating is very favorable despite challenges in returns and margins.
SoundHound AI, Inc. (SOUN) experienced strong revenue growth of 84.62% in 2024 and 550.63% over five years but suffers from severe negative profitability and an unfavorable global financial ratios evaluation. It maintains very low debt and a slightly unfavorable moat rating, with an overall rating also very favorable but accompanied by weak profitability and high valuation multiples.
Investors seeking growth might find SoundHound AI’s rapid revenue expansion appealing despite profitability concerns, while those focused on a more stable financial profile could view ServiceTitan’s moderate growth and stronger debt metrics as potentially more favorable. Both companies exhibit significant risks given their profitability and value destruction indicators.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of ServiceTitan, Inc. and SoundHound AI, Inc. to enhance your investment decisions:
