Financial Contrast: Porch Group (NASDAQ:PRCH) versus ServiceTitan (NASDAQ:TTAN)

Porch Group (NASDAQ:PRCH) and ServiceTitan (NASDAQ:TTAN) are both mid-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Valuation and Earnings

This table compares Porch Group and ServiceTitan”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$482.41 million	4.83	$15.32 million	($0.12)	-147.42
ServiceTitan	$1.06 billion	6.55	-$159.85 million	($1.36)	-53.15

Porch Group has higher earnings, but lower revenue than ServiceTitan. Porch Group is trading at a lower price-to-earnings ratio than ServiceTitan, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Porch Group and ServiceTitan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Porch Group	-2.67%	-68.47%	-1.67%
ServiceTitan	-12.12%	-5.65%	-4.93%

Risk and Volatility

Porch Group has a beta of 3.18, meaning that its stock price is 218% more volatile than the S&P 500. Comparatively, ServiceTitan has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Institutional & Insider Ownership

48.5% of Porch Group shares are held by institutional investors. 27.8% of Porch Group shares are held by company insiders. Comparatively, 39.9% of ServiceTitan shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Porch Group and ServiceTitan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	1	2	4	1	2.62
ServiceTitan	1	2	14	0	2.76

Porch Group currently has a consensus price target of $18.75, indicating a potential upside of 5.99%. ServiceTitan has a consensus price target of $96.38, indicating a potential upside of 33.34%. Given ServiceTitan’s stronger consensus rating and higher possible upside, analysts plainly believe ServiceTitan is more favorable than Porch Group.

Summary

ServiceTitan beats Porch Group on 8 of the 15 factors compared between the two stocks.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, 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.