Analyzing PagerDuty (NYSE:PD) and WEBTOON Entertainment (NASDAQ:WBTN)

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

Analyst Ratings

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

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

WEBTOON Entertainment presently has a consensus target price of $17.33, suggesting a potential upside of 25.97%. PagerDuty has a consensus target price of $16.64, suggesting a potential upside of 34.87%. Given PagerDuty’s higher possible upside, analysts clearly believe PagerDuty is more favorable than WEBTOON Entertainment.

Profitability

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

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

Institutional and Insider Ownership

97.3% of PagerDuty shares are owned by institutional investors. 5.5% of WEBTOON Entertainment shares are owned by company insiders. Comparatively, 8.0% of PagerDuty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEBTOON Entertainment	$1.35 billion	1.33	-$143.90 million	($1.01)	-13.62
PagerDuty	$467.50 million	2.42	-$54.46 million	$1.60	7.71

PagerDuty has lower revenue, but higher earnings 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.

Summary

PagerDuty beats WEBTOON Entertainment on 11 of the 14 factors compared between the two stocks.

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.

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.