In today’s dynamic tech landscape, ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) stand out as compelling players within the Software – Application sector. Both companies focus on enhancing operational efficiency but approach innovation from different angles—ServiceTitan streamlining field service management and PagerDuty optimizing digital operations management. By examining their growth strategies, market positioning, and financial health, I’ll help you determine which company potentially offers the most intriguing investment opportunity.
Table of contents
Company Overview
ServiceTitan, Inc. Overview
ServiceTitan, Inc. is a leading software provider that specializes in field service management for the residential and commercial sectors. Founded in 2008 by Ara Mahdessian and Vahe Kuzoyan, the company is headquartered in Glendale, CA. ServiceTitan’s mission is to empower home service businesses by providing a comprehensive platform that streamlines operations, enhances customer interactions, and drives efficiency. With a market capitalization of approximately $8.31B, ServiceTitan is recognized for its innovative solutions that facilitate the management of installation, maintenance, and service activities.
PagerDuty, Inc. Overview
PagerDuty, Inc. is a prominent player in the digital operations management space, operating a platform that collects and analyzes data signals from various software-enabled systems. Founded in 2009 and headquartered in San Francisco, CA, PagerDuty aims to improve operational reliability for organizations across multiple industries, including technology, telecommunications, and financial services. With a market cap near $1.09B, the company leverages machine learning to help businesses predict and resolve issues, making it a critical tool for maintaining service uptime and efficiency.
Both companies operate within the software application industry and offer platforms that enhance operational efficiency. However, ServiceTitan focuses on field service management, while PagerDuty specializes in digital operations management, highlighting a key difference in their respective business models.
Income Statement Comparison
Below is a comparative income statement for ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) for the fiscal year ending January 31, 2025.
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Revenue | 772M | 467M |
| EBITDA | -141M | -11.9M |
| EBIT | -221M | -32.5M |
| Net Income | -239M | -43.7M |
| EPS | -8.53 | -0.59 |
Interpretation of Income Statement
In 2025, ServiceTitan experienced a substantial increase in revenue from 614M in 2024 to 772M, indicating strong sales growth. However, its net income worsened, moving to -239M from -195M, reflecting rising operational costs affecting margins. PagerDuty also saw revenue growth, from 431M in 2024 to 467M, but its net income remained negative at -43.7M. Both companies continue to face challenges in profitability, with negative margins indicating a need for improved cost management.
Financial Ratios Comparison
Here’s a comparative overview of the most recent financial metrics for ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD):
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| ROE | -16.44% | -32.92% |
| ROIC | -14.25% | -10.07% |
| P/E | -18.12 | -39.87 |
| 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 negative returns on equity (ROE) and invested capital (ROIC), indicating inefficiencies in generating profits from shareholders’ equity and invested capital. ServiceTitan shows a significantly higher current and quick ratio, suggesting better short-term liquidity compared to PagerDuty. However, PagerDuty’s asset turnover ratio is slightly better, hinting at more efficient use of assets. The high debt-to-equity ratio for PagerDuty raises a concern about financial leverage and potential risk in downturns. Overall, both companies present significant risks, and careful consideration is advised before investment.
Dividend and Shareholder Returns
ServiceTitan, Inc. (TTAN) does not pay dividends, reflecting its focus on reinvestment for growth during its current high-growth phase. With a negative net income and significant operational challenges, this strategy prioritizes development over immediate shareholder returns. PagerDuty, Inc. (PD) similarly abstains from dividend payments, opting instead to allocate resources toward acquisitions and R&D. Both companies engage in share buybacks, a move that may support share price but carries risks if not accompanied by strong cash flows. Overall, their approaches indicate a commitment to long-term value creation, despite short-term sacrifices.
Strategic Positioning
ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) operate in the competitive software application industry, each leveraging distinct technological advantages. TTAN, with a market cap of 8.31B, focuses on field service management, while PD, valued at 1.09B, specializes in digital operations management. Both face competitive pressures from emerging technologies and established players, necessitating continuous innovation to maintain market share. As they adapt to technological disruptions, their strategic positioning will be critical in navigating this dynamic landscape effectively.
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 significant price changes and trading dynamics.
Trend Analysis
ServiceTitan, Inc. (TTAN) Over the past year, TTAN has experienced a price change of -10.75%. This indicates a bearish trend, characterized by a deceleration in price movement. The stock reached a notable high of 129.26 and a low of 85.07, reflecting substantial volatility with a standard deviation of 10.29. In the recent period from September 14, 2025, to November 30, 2025, the price further declined by 21.27%, confirming the bearish sentiment with a trend slope of -2.37 and a standard deviation of 8.85.
PagerDuty, Inc. (PD) PD’s stock has seen a sharp decline of -43.57% over the last year, marking a significant bearish trend with deceleration. The highest price recorded was 26.23, while the lowest was 12.03, indicating higher risk with a standard deviation of 2.97. In the recent period, from September 14, 2025, to November 30, 2025, PD’s price fell by 26.82%, further demonstrating the bearish outlook with a trend slope of -0.24 and a lower standard deviation of 1.15.
Both stocks show signs of seller dominance in their recent trading volumes, suggesting cautious sentiment among investors.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD). Analysts have rated TTAN with a C-, suggesting a cautious stance with concerns regarding its financial ratios. In contrast, PD has received a strong A- rating, with analysts highlighting its robust return on equity and overall financial health. The consensus for TTAN leans towards a hold, while PD is viewed more favorably, indicating a buy recommendation. These insights reflect the varying investor sentiments for 2025.
Stock Grades
I’ve analyzed the latest stock grades from reliable grading companies for two companies in the market. Here’s how they stand:
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 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Outperform | 2025-11-26 |
| Truist Securities | Maintain | Buy | 2025-11-19 |
| Canaccord Genuity | Maintain | Buy | 2025-09-04 |
| Baird | Maintain | Neutral | 2025-09-04 |
| RBC Capital | Maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | Maintain | Buy | 2025-06-02 |
| JP Morgan | Maintain | Underweight | 2025-05-30 |
| Truist Securities | Maintain | Buy | 2025-05-30 |
| RBC Capital | Maintain | Outperform | 2025-05-30 |
| TD Securities | Maintain | Hold | 2025-05-21 |
Overall, both ServiceTitan and PagerDuty have maintained their grades across various grading companies, indicating a stable outlook in their respective market positions. The consistent “Maintain” actions suggest investor confidence remains strong, despite fluctuating market conditions.
Target Prices
The consensus target prices for the two companies indicate a positive outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceTitan, Inc. | 145 | 115 | 132.57 |
| PagerDuty, Inc. | 16 | 15 | 15.5 |
For ServiceTitan, the consensus target price of 132.57 suggests significant upside potential compared to its current price of 89.46. PagerDuty’s consensus of 15.5 indicates moderate growth potential relative to its current price of 11.92.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD) based on the latest financial data.
| Criterion | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Limited product offerings | Diversified across industries |
| Profitability | Negative profit margins | Negative profit margins |
| Innovation | Strong focus on software development | Established digital operations platform |
| Global presence | Primarily US focused | International presence |
| Market Share | Emerging player | Established with notable market share |
| Debt level | Low debt-to-equity ratio | High debt-to-equity ratio |
Key takeaways indicate that while TTAN is emerging with a focus on software innovation and lower debt levels, PD boasts a broader market presence despite facing challenges in profitability and high debt levels.
Risk Analysis
The table below outlines the potential risks associated with each company, which can help in assessing their investment viability.
| Metric | ServiceTitan, Inc. (TTAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
In synthesizing the risks, ServiceTitan faces significant operational risks due to its negative profit margins and high dependency on market conditions. Conversely, PagerDuty is exposed to elevated market and geopolitical risks, which could adversely affect its performance in a volatile environment.
Which one to choose?
When comparing ServiceTitan, Inc. (TTAN) and PagerDuty, Inc. (PD), it is evident that both companies face significant challenges, yet their fundamentals and market positions vary considerably. TTAN has a gross profit margin of 65% but reports negative net income margins of -31%, indicating operational struggles. In contrast, PD boasts a higher gross profit margin of 83% and a better overall rating of A- compared to TTAN’s C-. Despite both stocks trending bearish, PD’s price-to-earnings ratio reflects more favorable valuation metrics.
For investors focused on growth, PD appears more promising, given its higher margins and ratings. On the other hand, those prioritizing stability may consider TTAN, though it comes with higher operational risks. Notably, both companies face risks linked to competition and market dependence, which could impact future performance.
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:
