Critical Review: ServiceTitan (NASDAQ:TTAN) versus JFrog (NASDAQ:FROG)

JFrog (NASDAQ:FROG) and ServiceTitan (NASDAQ:TTAN) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JFrog	-7.35%	-2.71%	-1.80%
ServiceTitan	-12.12%	-5.65%	-4.93%

Analyst Ratings

This is a summary of recent ratings and recommmendations for JFrog and ServiceTitan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFrog	1	1	21	0	2.87
ServiceTitan	1	2	14	0	2.76

JFrog currently has a consensus price target of $109.71, indicating a potential upside of 18.78%. ServiceTitan has a consensus price target of $96.38, indicating a potential upside of 19.41%. Given ServiceTitan’s higher probable upside, analysts clearly believe ServiceTitan is more favorable than JFrog.

Institutional & Insider Ownership

85.0% of JFrog shares are held by institutional investors. 11.8% of JFrog 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 company will outperform the market over the long term.

Risk & Volatility

JFrog has a beta of 1.24, meaning that its stock price is 24% 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.

Valuation & Earnings

This table compares JFrog and ServiceTitan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFrog	$531.84 million	21.41	-$71.82 million	($0.37)	-249.65
ServiceTitan	$960.97 million	8.10	-$159.85 million	($1.36)	-59.35

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

Summary

JFrog beats ServiceTitan on 10 of the 14 factors compared between the two stocks.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

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.