Microsoft (NASDAQ:MSFT – Get Free Report) and ServiceTitan (NASDAQ:TTAN – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Risk & Volatility
Microsoft has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, ServiceTitan has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.
Earnings & Valuation
This table compares Microsoft and ServiceTitan”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microsoft | $331.84 billion | 11.05 | $133.75 billion | $17.96 | 27.49 |
| ServiceTitan | $960.97 million | 5.38 | -$159.85 million | ($1.36) | -39.81 |
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.
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 Recommendations
This is a summary of current recommendations and price targets for Microsoft and ServiceTitan, as provided by MarketBeat.com.
| 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 presently has a consensus price target of $564.27, indicating a potential upside of 14.31%. ServiceTitan has a consensus price target of $96.38, indicating a potential upside of 77.99%. Given ServiceTitan’s higher probable upside, analysts clearly believe ServiceTitan is more favorable than Microsoft.
Institutional & Insider Ownership
71.1% of Microsoft shares are held by institutional investors. 0.0% of Microsoft shares are held by insiders. Comparatively, 39.9% of ServiceTitan shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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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