Strategy (NASDAQ:MSTR – Get Free Report) and PagerDuty (NYSE:PD – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Strategy and PagerDuty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Strategy | 1 | 2 | 13 | 2 | 2.89 |
| PagerDuty | 2 | 5 | 3 | 0 | 2.10 |
Strategy presently has a consensus price target of $251.50, indicating a potential upside of 64.28%. PagerDuty has a consensus price target of $12.56, indicating a potential downside of 16.94%. Given Strategy’s stronger consensus rating and higher probable upside, analysts plainly believe Strategy is more favorable than PagerDuty.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Strategy | $498.35 million | 118.03 | -$3.85 billion | ($97.21) | -1.57 |
| PagerDuty | $492.55 million | 2.42 | $173.85 million | $2.00 | 7.56 |
PagerDuty has lower revenue, but higher earnings than Strategy. Strategy is trading at a lower price-to-earnings ratio than PagerDuty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
59.8% of Strategy shares are owned by institutional investors. Comparatively, 97.3% of PagerDuty shares are owned by institutional investors. 6.5% of Strategy shares are owned by company insiders. Comparatively, 6.0% of PagerDuty shares are owned 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.
Volatility and Risk
Strategy has a beta of 3.59, indicating that its share price is 259% 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.
Profitability
This table compares Strategy and PagerDuty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Strategy | -6,102.95% | -74.18% | -50.25% |
| PagerDuty | 37.50% | 18.52% | 4.84% |
Summary
Strategy beats PagerDuty on 8 of the 15 factors compared between the two stocks.
About Strategy
Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.
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.
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