Critical Analysis: MiX Telematics (NYSE:MIXT) vs. PagerDuty (NYSE:PD)

MiX Telematics (NYSE:MIXT) and PagerDuty (NYSE:PD) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

45.7% of MiX Telematics shares are owned by institutional investors. Comparatively, 97.3% of PagerDuty shares are owned by institutional investors. 12.4% of MiX Telematics shares are owned by insiders. Comparatively, 7.6% of PagerDuty shares are owned by 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.

Earnings & Valuation

This table compares MiX Telematics and PagerDuty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MiX Telematics	$150.06 million	2.36	$4.52 million	$0.25	58.20
PagerDuty	$430.70 million	4.45	-$81.76 million	($0.80)	-26.59

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MiX Telematics	0	0	1	0	3.00
PagerDuty	0	6	5	0	2.45

MiX Telematics currently has a consensus price target of $12.00, indicating a potential downside of 17.53%. PagerDuty has a consensus price target of $22.00, indicating a potential upside of 3.43%. Given PagerDuty’s higher possible upside, analysts plainly believe PagerDuty is more favorable than MiX Telematics.

Volatility & Risk

MiX Telematics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, PagerDuty has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MiX Telematics	3.72%	8.45%	5.11%
PagerDuty	-16.29%	-22.02%	-3.77%

Summary

MiX Telematics beats PagerDuty on 9 of the 14 factors compared between the two stocks.

About MiX Telematics

MiX Telematics Limited, together with its subsidiaries, provides fleet and mobile asset management solutions through software-as-a-service (SaaS) delivery model. It offers MiX Fleet Manager, a commercial fleet management solution comprising MyMiX, an innovative driver engagement platform; MiX Vision, an on-road and in-vehicle video recording solution; MiX Rovi, an in-vehicle display and communications system; MiX RIBAS and DriveMate, an in-cab driving aid solution; MiX Hours of Service, which allows real-time monitoring and compliance; MiX Journey Management, an easy-to-use electronic alternative to paper-based systems; and MiX OEM Connect allows customer instant, direct integration to relevant, and powerful telematics data. The company provides MiX Asset Manager, asset tracking products including generators, light towers, storage tanks and pumps, and asset management solution for visibility of corporate assets; and Matrix, a suite of mobile asset management solutions for entry-level fleets and consumers, which offers real-time and historical vehicle tracking, and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks, and vehicle maintenance notifications. In addition, it offers Beam-e, a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. The company delivers fleet and mobile asset management solutions as SaaS to 1,001,800 subscribers in South Africa, the Americas, the Middle East, Australia, Europe, and Brazil. MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.

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.