Analyzing PagerDuty (PD) & Its Rivals

PagerDuty (NYSE:PD) is one of 954 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare PagerDuty to related companies based on the strength of its earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

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	-612.31%	21.01%	-8.89%

Volatility & Risk

PagerDuty has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, PagerDuty’s competitors have a beta of 1.25, suggesting that their average stock price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

97.3% of PagerDuty shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 6.0% of PagerDuty shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by 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.

Analyst Recommendations

This is a breakdown of recent recommendations 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	5714	21419	44677	1492	2.57

PagerDuty currently has a consensus price target of $12.56, indicating a potential downside of 25.73%. As a group, “Software” companies have a potential upside of 27.86%. Given PagerDuty’s competitors stronger consensus rating and higher probable upside, analysts clearly believe PagerDuty has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares PagerDuty and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PagerDuty	$492.55 million	$173.85 million	8.46
PagerDuty Competitors	$1.79 billion	$385.13 million	111.21

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.

Summary

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

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.