Comparing PagerDuty (NYSE:PD) and Asana (NYSE:ASAN)

PagerDuty (NYSE:PD) and Asana (NYSE:ASAN) are both computer and 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.

Valuation and Earnings

This table compares PagerDuty and Asana”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$467.50 million	2.97	-$54.46 million	($0.16)	-92.91
Asana	$723.88 million	3.94	-$255.54 million	($0.89)	-13.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagerDuty	-2.87%	2.81%	0.44%
Asana	-27.50%	-83.88%	-22.07%

Analyst Recommendations

This is a summary of current recommendations for PagerDuty and Asana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	3	5	5	0	2.15
Asana	5	7	4	1	2.06

PagerDuty currently has a consensus price target of $18.70, suggesting a potential upside of 25.80%. Asana has a consensus price target of $16.10, suggesting a potential upside of 33.44%. Given Asana’s higher probable upside, analysts plainly believe Asana is more favorable than PagerDuty.

Institutional and Insider Ownership

97.3% of PagerDuty shares are owned by institutional investors. Comparatively, 26.2% of Asana shares are owned by institutional investors. 8.0% of PagerDuty shares are owned by insiders. Comparatively, 61.3% of Asana 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.

Risk and Volatility

PagerDuty has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Asana has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Summary

PagerDuty beats Asana on 8 of the 15 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 Asana

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.