PagerDuty (PD) versus Its Peers Financial Contrast

PagerDuty (NYSE:PD) is one of 953 public companies in the “Software” industry, but how does it compare to its competitors? We will compare PagerDuty to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares PagerDuty and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagerDuty	37.50%	18.52%	4.84%
PagerDuty Competitors	-612.66%	21.01%	-8.93%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PagerDuty and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	2	5	3	0	2.10
PagerDuty Competitors	5748	21526	44879	1497	2.57

PagerDuty currently has a consensus target price of $12.56, indicating a potential downside of 19.84%. As a group, “Software” companies have a potential upside of 28.88%. Given PagerDuty’s competitors stronger consensus rating and higher possible upside, analysts plainly believe PagerDuty has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

97.3% of PagerDuty shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 6.0% of PagerDuty shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares PagerDuty and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PagerDuty	$492.55 million	$173.85 million	7.84
PagerDuty Competitors	$1.81 billion	$385.92 million	108.58

PagerDuty’s competitors have higher revenue and earnings than PagerDuty. PagerDuty is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

PagerDuty has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, PagerDuty’s competitors have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.

Summary

PagerDuty competitors beat PagerDuty on 10 of the 13 factors compared.

PagerDuty Company Profile

PagerDuty, Inc. engages in the operation of a digital operations management platform in the United States and internationally. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues. It serves various industries, including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. PagerDuty, Inc. was founded in 2009 and is headquartered in San Francisco, California.