Head-To-Head Analysis: PagerDuty (NYSE:PD) and Roblox (NYSE:RBLX)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$457.17 million	3.49	-$81.76 million	($0.80)	-22.13
Roblox	$3.60 billion	10.89	-$935.38 million	($1.45)	-43.69

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagerDuty	-16.29%	-22.02%	-3.77%
Roblox	-25.97%	-665.98%	-14.02%

Institutional and Insider Ownership

97.3% of PagerDuty shares are owned by institutional investors. Comparatively, 94.5% of Roblox shares are owned by institutional investors. 7.6% of PagerDuty shares are owned by company insiders. Comparatively, 22.2% of Roblox shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

PagerDuty has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Roblox has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PagerDuty and Roblox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	2	5	4	0	2.18
Roblox	1	6	17	1	2.72

PagerDuty presently has a consensus price target of $21.64, indicating a potential upside of 22.20%. Roblox has a consensus price target of $64.19, indicating a potential upside of 1.32%. Given PagerDuty’s higher probable upside, research analysts clearly believe PagerDuty is more favorable than Roblox.

Summary

PagerDuty beats Roblox 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 Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.