Comparing PagerDuty (NYSE:PD) & HeartCore Enterprises (NASDAQ:HTCR)

PagerDuty (NYSE:PD) and HeartCore Enterprises (NASDAQ:HTCR) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Volatility and Risk

PagerDuty has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, HeartCore Enterprises has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagerDuty	2	5	3	0	2.10
HeartCore Enterprises	1	1	0	0	1.50

PagerDuty currently has a consensus target price of $12.56, suggesting a potential downside of 10.87%. Given PagerDuty’s stronger consensus rating and higher probable upside, research analysts clearly believe PagerDuty is more favorable than HeartCore Enterprises.

Valuation and Earnings

This table compares PagerDuty and HeartCore Enterprises”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagerDuty	$494.73 million	2.24	$173.85 million	$2.00	7.05
HeartCore Enterprises	$8.97 million	0.34	$5.79 million	($4.21)	-0.47

PagerDuty has higher revenue and earnings than HeartCore Enterprises. HeartCore Enterprises 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 HeartCore Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagerDuty	37.50%	18.52%	4.84%
HeartCore Enterprises	15.42%	-138.90%	-53.97%

Insider and Institutional Ownership

97.3% of PagerDuty shares are owned by institutional investors. Comparatively, 1.7% of HeartCore Enterprises shares are owned by institutional investors. 6.0% of PagerDuty shares are owned by company insiders. Comparatively, 36.1% of HeartCore Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

PagerDuty beats HeartCore Enterprises on 12 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 HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.