Financial Contrast: PagerDuty (NYSE:PD) and WEBTOON Entertainment (NASDAQ:WBTN)

PagerDuty (NYSE:PD) and WEBTOON Entertainment (NASDAQ:WBTN) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk & Volatility

PagerDuty has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagerDuty	31.12%	10.27%	2.11%
WEBTOON Entertainment	-9.28%	-2.14%	-1.67%

Institutional & Insider Ownership

97.3% of PagerDuty shares are owned by institutional investors. 8.0% of PagerDuty shares are owned by insiders. Comparatively, 5.5% of WEBTOON Entertainment 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 and Valuation

This table compares PagerDuty and WEBTOON Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$467.50 million	2.48	-$54.46 million	$1.60	7.91
WEBTOON Entertainment	$1.35 billion	1.33	-$143.90 million	($1.01)	-13.55

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PagerDuty and WEBTOON Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	3	6	4	1	2.21
WEBTOON Entertainment	1	4	4	0	2.33

PagerDuty currently has a consensus target price of $16.64, suggesting a potential upside of 31.51%. WEBTOON Entertainment has a consensus target price of $17.33, suggesting a potential upside of 26.61%. Given PagerDuty’s higher possible upside, equities research analysts plainly believe PagerDuty is more favorable than WEBTOON Entertainment.

Summary

PagerDuty beats WEBTOON Entertainment on 11 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 WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.