AppFolio, Inc. (APPF) vs ServiceTitan Inc. (TTAN)

AppFolio, Inc. and ServiceTitan Inc. are both Software Application companies. AppFolio, Inc. and ServiceTitan Inc. are of similar size ($7.0B and $7.0B). ServiceTitan Inc. has negative trailing earnings, so its P/E is not meaningful; AppFolio, Inc. trades at 45.9×. ServiceTitan Inc. grew revenue faster over the last twelve months: 22.9% against 20.7%. AppFolio, Inc. has the higher net margin (15.1% vs −12.1%) and the higher return on invested capital (37.4% vs −7.67%). Across the 17 metrics below, AppFolio, Inc. leads on 10 and ServiceTitan Inc. on 7.

Valuation

Metric APPF TTAN Software Application median
P/E 45.85 n/m 24.69
P/S 6.88 6.54 2.74
P/B 13.60 4.33 2.83
Price to free cash flow 28.63 61.05 17.55
EV/EBITDA 32.34 n/m 14.66
EV/Sales 6.76 6.18 2.65
Earnings yield 2.18% (1.87%) 0.00%
Free cash flow yield 3.49% 1.64% 1.87%

Profitability

Metric APPF TTAN Software Application median
Gross margin 63.53% 71.08% 67.03%
Operating margin 17.52% (12.98%) 0.00%
Net margin 15.13% (12.12%) 0.00%
Free cash flow margin 25.51% 10.71% 5.01%
Return on equity 32.09% (8.34%) 0.00%
Return on assets 25.91% (7.19%) 0.00%
Return on invested capital 37.43% (7.67%) 0.00%

Growth

Metric APPF TTAN Software Application median
Revenue growth (TTM) 20.66% 22.90% 12.48%
EPS growth (last fiscal year) (30.09%) 79.72% 32.26%
Revenue growth, 5-year CAGR 25.12% — 14.21%
Net income growth, 5-year CAGR (2.31%) — 0.00%

Health

Metric APPF TTAN Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 3.83 4.55 1.52
Net debt to EBITDA (1.33) 6.07 0.06

Dividend

Metric APPF TTAN Software Application median
Dividend yield — — 0.86%
Payout ratio — — 0.29

Size

Metric APPF TTAN Software Application median
Market cap 6.99b 7.04b 379.49m

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