Contrasting PagerDuty (NYSE:PD) and NiCE (NASDAQ:NICE)

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

Insider & Institutional Ownership

97.3% of PagerDuty shares are owned by institutional investors. Comparatively, 63.3% of NiCE shares are owned by institutional investors. 8.0% of PagerDuty shares are owned by company insiders. Comparatively, 0.0% of NiCE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

PagerDuty has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, NiCE has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PagerDuty and NiCE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	3	5	5	0	2.15
NiCE	1	4	9	0	2.57

PagerDuty presently has a consensus target price of $18.40, indicating a potential upside of 23.57%. NiCE has a consensus target price of $170.54, indicating a potential upside of 62.25%. Given NiCE’s stronger consensus rating and higher possible upside, analysts plainly believe NiCE is more favorable than PagerDuty.

Profitability

This table compares PagerDuty and NiCE’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%
NiCE	18.92%	17.43%	11.95%

Valuation & Earnings

This table compares PagerDuty and NiCE”s top-line 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)	-93.06
NiCE	$2.88 billion	2.31	$442.59 million	$8.80	11.94

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

Summary

NiCE beats PagerDuty 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 NiCE

NiCE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform; Enlighten, an AI engine for the customer engagement market; and smart self-service enables organizations to address consumers’ needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer’s request, and connects them using real-time AI-based routing. The company provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time; provides solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NiCE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. The company was formerly known as NiCE-Systems Ltd. and changed its name to NiCE Ltd. in June 2016. NiCE Ltd. was founded in 1986 and is headquartered in Ra’anana, Israel.