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

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

Institutional & Insider Ownership

1.7% of HeartCore Enterprises shares are held by institutional investors. Comparatively, 97.3% of PagerDuty shares are held by institutional investors. 36.1% of HeartCore Enterprises shares are held by insiders. Comparatively, 6.0% of PagerDuty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for HeartCore Enterprises and PagerDuty, as reported by MarketBeat.com.

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

PagerDuty has a consensus target price of $12.56, suggesting a potential downside of 8.03%. Given PagerDuty’s stronger consensus rating and higher possible upside, analysts plainly believe PagerDuty is more favorable than HeartCore Enterprises.

Valuation & Earnings

This table compares HeartCore Enterprises and PagerDuty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$8.97 million	0.34	$5.79 million	($4.21)	-0.48
PagerDuty	$492.55 million	2.18	$173.85 million	$2.00	6.83

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.

Risk & Volatility

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

Summary

PagerDuty beats HeartCore Enterprises on 12 of the 14 factors compared between the two stocks.

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.

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.