StoneCo (NASDAQ:STNE) vs. PagerDuty (NYSE:PD) Head-To-Head Review

StoneCo (NASDAQ:STNE) and PagerDuty (NYSE:PD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

73.2% of StoneCo shares are owned by institutional investors. Comparatively, 97.3% of PagerDuty shares are owned by institutional investors. 11.3% of StoneCo shares are owned by insiders. Comparatively, 8.0% of PagerDuty shares are owned by 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.

Earnings & Valuation

This table compares StoneCo and PagerDuty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$2.53 billion	1.59	$425.73 million	$1.53	9.19
PagerDuty	$492.55 million	0.99	$173.85 million	$1.84	3.12

StoneCo has higher revenue and earnings than PagerDuty. PagerDuty is trading at a lower price-to-earnings ratio than StoneCo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for StoneCo and PagerDuty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	0	4	6	0	2.60
PagerDuty	3	7	3	0	2.00

StoneCo currently has a consensus price target of $19.07, suggesting a potential upside of 35.64%. PagerDuty has a consensus price target of $12.40, suggesting a potential upside of 116.22%. Given PagerDuty’s higher probable upside, analysts plainly believe PagerDuty is more favorable than StoneCo.

Profitability

This table compares StoneCo and PagerDuty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneCo	15.38%	21.55%	4.30%
PagerDuty	35.30%	16.29%	3.82%

Volatility and Risk

StoneCo has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, PagerDuty has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Summary

StoneCo beats PagerDuty on 10 of the 14 factors compared between the two stocks.

About StoneCo

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.

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.