PagerDuty (NYSE:PD – Get Free Report) and Lightspeed Commerce (NYSE:LSPD – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Insider & Institutional Ownership
97.3% of PagerDuty shares are held by institutional investors. Comparatively, 68.7% of Lightspeed Commerce shares are held by institutional investors. 6.0% of PagerDuty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares PagerDuty and Lightspeed Commerce’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% |
| Lightspeed Commerce | -7.81% | 1.06% | 0.95% |
Volatility & Risk
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for PagerDuty and Lightspeed Commerce, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PagerDuty | 2 | 5 | 3 | 0 | 2.10 |
| Lightspeed Commerce | 3 | 9 | 4 | 0 | 2.06 |
PagerDuty presently has a consensus price target of $12.56, suggesting a potential downside of 19.13%. Lightspeed Commerce has a consensus price target of $11.39, suggesting a potential upside of 17.63%. Given Lightspeed Commerce’s higher possible upside, analysts clearly believe Lightspeed Commerce is more favorable than PagerDuty.
Earnings & Valuation
This table compares PagerDuty and Lightspeed Commerce”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PagerDuty | $492.55 million | 2.48 | $173.85 million | $2.00 | 7.77 |
| Lightspeed Commerce | $1.23 billion | 1.09 | -$144.41 million | ($0.70) | -13.84 |
PagerDuty has higher earnings, but lower revenue than Lightspeed Commerce. Lightspeed Commerce 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 Lightspeed Commerce on 10 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 Lightspeed Commerce
Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.
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