Comparing Definitive Healthcare (NASDAQ:DH) and PagerDuty (NYSE:PD)

PagerDuty (NYSE:PD) and Definitive Healthcare (NASDAQ:DH) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PagerDuty and Definitive Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	3	5	5	0	2.15
Definitive Healthcare	2	4	1	0	1.86

PagerDuty currently has a consensus target price of $18.70, suggesting a potential upside of 23.68%. Definitive Healthcare has a consensus target price of $4.28, suggesting a potential upside of 61.51%. Given Definitive Healthcare’s higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than PagerDuty.

Insider & Institutional Ownership

97.3% of PagerDuty shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 8.0% of PagerDuty shares are held by company insiders. Comparatively, 16.3% of Definitive Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PagerDuty and Definitive Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$483.61 million	2.92	-$54.46 million	($0.16)	-94.50
Definitive Healthcare	$252.20 million	1.50	-$413.12 million	($2.65)	-1.00

PagerDuty has higher revenue and earnings than Definitive Healthcare. PagerDuty is trading at a lower price-to-earnings ratio than Definitive Healthcare, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PagerDuty has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares PagerDuty and Definitive Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagerDuty	-2.87%	2.81%	0.44%
Definitive Healthcare	-124.43%	3.94%	2.20%

About PagerDuty

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.

About Definitive Healthcare

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.