Pegasystems Inc. (PEGA) vs ServiceTitan Inc. (TTAN)

Pegasystems Inc. and ServiceTitan Inc. are both Software Application companies. Pegasystems Inc. and ServiceTitan Inc. are of similar size ($5.7B and $5.6B). ServiceTitan Inc. has negative trailing earnings, so its P/E is not meaningful; Pegasystems Inc. trades at 17.8×. ServiceTitan Inc. grew revenue faster over the last twelve months: 22.9% against 3.60%. Pegasystems Inc. has the higher net margin (18.7% vs −12.1%) and the higher return on invested capital (54.4% vs −7.67%). Across the 17 metrics below, Pegasystems Inc. leads on 14 and ServiceTitan Inc. on 3.

Valuation

Metric PEGA TTAN Software Application median
P/E 17.76 n/m 24.79
P/S 3.22 5.21 2.67
P/B 9.97 3.46 3.01
Price to free cash flow 11.35 48.70 16.59
EV/EBITDA 23.28 n/m 14.40
EV/Sales 3.57 4.86 2.62
Earnings yield 5.63% (2.35%) 0.00%
Free cash flow yield 8.81% 2.05% 1.91%

Profitability

Metric PEGA TTAN Software Application median
Gross margin 75.57% 71.08% 67.03%
Operating margin 9.94% (12.98%) 0.00%
Net margin 18.66% (12.12%) 0.00%
Free cash flow margin 28.36% 10.71% 4.32%
Return on equity 54.69% (8.34%) 0.00%
Return on assets 23.93% (7.19%) 0.00%
Return on invested capital 54.36% (7.67%) 0.00%

Growth

Metric PEGA TTAN Software Application median
Revenue growth (TTM) 3.60% 22.90% 12.40%
EPS growth (last fiscal year) 283.78% 79.72% —
Revenue growth, 5-year CAGR 11.40% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PEGA TTAN Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 1.06 4.55 1.55
Net debt to EBITDA (1.19) 6.07 0.06

Dividend

Metric PEGA TTAN Software Application median
Dividend yield 0.23% — 1.25%
Payout ratio 0.67 — 0.00

Size

Metric PEGA TTAN Software Application median
Market cap 5.62b 5.73b 396.11m

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