Ringcentral, Inc. (RNG) vs ServiceTitan Inc. (TTAN)

Ringcentral, Inc. and ServiceTitan Inc. are both Software Application companies. Ringcentral, Inc. is the larger, with a market value of $6.7B against $5.7B — 1.2× the size. ServiceTitan Inc. has negative trailing earnings, so its P/E is not meaningful; Ringcentral, Inc. trades at 59.0×. ServiceTitan Inc. grew revenue faster over the last twelve months: 22.9% against 5.22%. Ringcentral, Inc. has the higher net margin (4.27% vs −12.1%) and the higher return on invested capital (27.2% vs −7.67%). Across the 17 metrics below, Ringcentral, Inc. leads on 14 and ServiceTitan Inc. on 3.

Valuation

Metric RNG TTAN Software Application median
P/E 59.04 n/m 24.79
P/S 2.48 5.21 2.67
P/B n/m 3.46 3.01
Price to free cash flow 11.15 48.70 16.59
EV/EBITDA 13.13 n/m 14.40
EV/Sales 2.87 4.86 2.62
Earnings yield 1.69% (2.35%) 0.00%
Free cash flow yield 8.97% 2.05% 1.91%

Profitability

Metric RNG TTAN Software Application median
Gross margin 71.83% 71.08% 67.03%
Operating margin 6.72% (12.98%) 0.00%
Net margin 4.27% (12.12%) 0.00%
Free cash flow margin 22.31% 10.71% 4.32%
Return on equity (20.10%) (8.34%) 0.00%
Return on assets 7.38% (7.19%) 0.00%
Return on invested capital 27.20% (7.67%) 0.00%

Growth

Metric RNG TTAN Software Application median
Revenue growth (TTM) 5.22% 22.90% 12.40%
EPS growth (last fiscal year) 176.19% 79.72% —
Revenue growth, 5-year CAGR 16.27% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric RNG TTAN Software Application median
Debt to equity (1.84) 0.00 0.02
Current ratio 1.11 4.55 1.55
Net debt to EBITDA 2.19 6.07 0.06

Dividend

Metric RNG TTAN Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric RNG TTAN Software Application median
Market cap 6.67b 5.73b 396.11m

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