Microsoft (NASDAQ:MSFT – Get Free Report) and ServiceTitan (NASDAQ:TTAN – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Volatility and Risk
Microsoft has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, ServiceTitan has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.
Earnings & Valuation
This table compares Microsoft and ServiceTitan”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microsoft | $331.84 billion | 11.02 | $133.75 billion | $17.96 | 27.42 |
| ServiceTitan | $960.97 million | 5.56 | -$159.85 million | ($1.45) | -38.63 |
Microsoft has higher revenue and earnings than ServiceTitan. ServiceTitan is trading at a lower price-to-earnings ratio than Microsoft, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
71.1% of Microsoft shares are owned by institutional investors. 0.0% of Microsoft shares are owned by insiders. Comparatively, 39.9% of ServiceTitan shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Microsoft and ServiceTitan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Microsoft | 40.31% | 31.98% | 18.70% |
| ServiceTitan | -12.12% | -5.65% | -4.93% |
Analyst Ratings
This is a breakdown of recent recommendations for Microsoft and ServiceTitan, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Microsoft | 0 | 5 | 42 | 0 | 2.89 |
| ServiceTitan | 1 | 2 | 14 | 0 | 2.76 |
Microsoft currently has a consensus target price of $564.27, indicating a potential upside of 14.59%. ServiceTitan has a consensus target price of $96.38, indicating a potential upside of 72.07%. Given ServiceTitan’s higher possible upside, analysts plainly believe ServiceTitan is more favorable than Microsoft.
Summary
Microsoft beats ServiceTitan on 12 of the 14 factors compared between the two stocks.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
About ServiceTitan
ServiceTitan, Inc. engages in the collection of field service activities required to install, maintain, and service the infrastructure and systems of residences and commercial buildings. The company was founded by Ara Mahdessian and Vahe Kuzoyan on June 8, 2008 and is headquartered in Glendale, CA.
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