Rekor Systems (NASDAQ:REKR – Get Free Report) and PagerDuty (NYSE:PD – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Risk and Volatility
Rekor Systems has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, PagerDuty has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Institutional and Insider Ownership
45.7% of Rekor Systems shares are owned by institutional investors. Comparatively, 97.3% of PagerDuty shares are owned by institutional investors. 3.2% of Rekor Systems shares are owned by insiders. Comparatively, 6.0% of PagerDuty shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Rekor Systems and PagerDuty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rekor Systems | 1 | 0 | 0 | 0 | 1.00 |
| PagerDuty | 2 | 5 | 3 | 0 | 2.10 |
PagerDuty has a consensus price target of $12.81, suggesting a potential downside of 18.17%. Given PagerDuty’s stronger consensus rating and higher probable upside, analysts plainly believe PagerDuty is more favorable than Rekor Systems.
Profitability
This table compares Rekor Systems and PagerDuty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rekor Systems | -43.84% | -59.05% | -27.37% |
| PagerDuty | 37.50% | 18.52% | 4.84% |
Valuation & Earnings
This table compares Rekor Systems and PagerDuty”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rekor Systems | $49.82 million | 0.90 | -$31.46 million | ($0.16) | -2.04 |
| PagerDuty | $492.55 million | 2.50 | $173.85 million | $2.00 | 7.83 |
PagerDuty has higher revenue and earnings than Rekor Systems. Rekor Systems 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 Rekor Systems on 13 of the 14 factors compared between the two stocks.
About Rekor Systems
Rekor Systems, Inc. (NASDAQ: REKR) is a technology company that develops artificial intelligence and machine-learning solutions for roadway intelligence, public safety, and transportation management. Its software analyzes data from cameras and other sources to help government agencies, law enforcement organizations, transportation departments, and commercial customers understand and manage vehicle movement. The company’s Rekor One platform is designed to combine roadway data from multiple sources and provide tools for vehicle identification, traffic analytics, incident detection, and operational decision-making.
About PagerDuty
PagerDuty, Inc. provides cloud-based software for managing digital operations. Its PagerDuty Operations Cloud platform helps organizations detect and respond to technology incidents, coordinate response teams, automate operational workflows and reduce disruptions to digital services. The company’s products support incident management, AIOps, automation and customer service operations. They are used by IT, engineering, security and support teams to monitor systems, prioritize alerts and coordinate work across people and technology.
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