Crexendo (NASDAQ:CXDO) versus PagerDuty (NYSE:PD) Head-To-Head Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$492.55 million	2.47	$173.85 million	$2.00	7.73
Crexendo	$68.17 million	2.91	$5.07 million	$0.14	42.57

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

Volatility and Risk

PagerDuty has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagerDuty	37.50%	18.52%	4.84%
Crexendo	5.31%	14.34%	11.44%

Analyst Ratings

This is a breakdown of recent ratings and target prices for PagerDuty and Crexendo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	2	5	3	0	2.10
Crexendo	0	1	3	0	2.75

PagerDuty currently has a consensus price target of $12.56, indicating a potential downside of 18.70%. Crexendo has a consensus price target of $10.50, indicating a potential upside of 76.17%. Given Crexendo’s stronger consensus rating and higher possible upside, analysts clearly believe Crexendo is more favorable than PagerDuty.

Insider & Institutional Ownership

97.3% of PagerDuty shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 6.0% of PagerDuty shares are held by company insiders. Comparatively, 47.2% of Crexendo shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Crexendo beats PagerDuty on 7 of the 13 factors compared between the two stocks.

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 Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.