PagerDuty (NYSE:PD – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
97.3% of PagerDuty shares are owned by institutional investors. 8.0% of PagerDuty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
PagerDuty has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PagerDuty | 3 | 6 | 4 | 1 | 2.21 |
| WEBTOON Entertainment | 1 | 4 | 4 | 0 | 2.33 |
PagerDuty presently has a consensus price target of $17.00, indicating a potential upside of 40.32%. WEBTOON Entertainment has a consensus price target of $17.33, indicating a potential upside of 26.61%. Given PagerDuty’s higher possible upside, analysts clearly believe PagerDuty is more favorable than WEBTOON Entertainment.
Profitability
This table compares PagerDuty and WEBTOON Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PagerDuty | 31.12% | 10.27% | 2.11% |
| WEBTOON Entertainment | -9.28% | -2.14% | -1.67% |
Earnings & Valuation
This table compares PagerDuty and WEBTOON Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PagerDuty | $467.50 million | 2.38 | -$54.46 million | $1.60 | 7.57 |
| WEBTOON Entertainment | $1.35 billion | 1.33 | -$143.90 million | ($1.01) | -13.55 |
PagerDuty has higher earnings, but lower revenue than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than PagerDuty, indicating that it is currently the more affordable of the two stocks.
Summary
PagerDuty beats WEBTOON Entertainment on 11 of the 14 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 WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
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