In today’s rapidly evolving market, understanding which companies to invest in can be a daunting task. I have chosen to compare Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD), two distinct players within the industrial and technology sectors, respectively. Both companies showcase innovative strategies and operate in overlapping markets, making this analysis particularly relevant for investors seeking growth opportunities. Join me as we explore which of these companies stands out as the most compelling investment choice in this competitive landscape.
Table of contents
Company Overview
Roper Technologies, Inc. Overview
Roper Technologies, Inc. is a diversified technology company based in Sarasota, Florida, specializing in the design and development of software, engineered products, and solutions across various sectors. Founded in 1981, Roper operates within the industrial machinery industry and has a market capitalization of approximately $48B. The company provides a wide array of services, including cloud-based financial analytics, data management, healthcare software, and precision measurement instruments. Roper’s mission is to enhance operational efficiency and innovation for its clients, making it a key player in the industrial technology landscape.
PagerDuty, Inc. Overview
PagerDuty, Inc., headquartered in San Francisco, California, is a leading player in digital operations management, with a focus on leveraging data from software-enabled systems to optimize operational performance. Founded in 2009, the company has carved out a niche in the technology sector, boasting a market cap of around $1.18B. PagerDuty’s platform utilizes machine learning to predict and resolve issues across various industries, including telecommunications and retail. Its mission is to empower organizations to improve their digital operations and enhance service delivery.
Roper Technologies and PagerDuty exhibit distinct business models; Roper is rooted in diversified industrial solutions, focusing on hardware and software integration, while PagerDuty centers on digital operations management through software analytics. Both companies prioritize innovation but cater to different market needs, reflecting their unique positions in the technology and industrial sectors.
Income Statement Comparison
The following table compares the most recent income statements for Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD), highlighting key financial metrics.
| Metric | Roper Technologies, Inc. | PagerDuty, Inc. |
|---|---|---|
| Revenue | 7.04B | 467M |
| EBITDA | 3.04B | -11.89M |
| EBIT | 2.23B | -32.50M |
| Net Income | 1.55B | -42.74M |
| EPS | 14.47 | -0.59 |
Interpretation of Income Statement
Roper Technologies has demonstrated strong revenue growth, increasing from 6.18B in 2023 to 7.04B in 2024, alongside a rise in net income from 1.36B to 1.55B. This indicates solid operational efficiency, with margins improving slightly. In contrast, PagerDuty continues to struggle, posting a revenue increase from 430M to 467M but still recording a net loss of 42.74M in 2025, reflecting ongoing challenges in profitability and cost management. The stark contrast between these companies highlights ROP’s robust performance against PD’s continued operational hurdles.
Financial Ratios Comparison
The following table provides a comparison of the most recent revenue and key financial ratios for Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD).
| Metric | Roper Technologies (ROP) | PagerDuty (PD) |
|---|---|---|
| ROE | 8.21% | -32.92% |
| ROIC | 5.50% | -10.07% |
| P/E | 35.94 | -39.87 |
| P/B | 2.95 | 13.12 |
| Current Ratio | 0.40 | 1.87 |
| Quick Ratio | 0.37 | 1.87 |
| D/E | 0.41 | 3.57 |
| Debt-to-Assets | 24.48% | 50.00% |
| Interest Coverage | 7.70 | -6.46 |
| Asset Turnover | 0.22 | 0.50 |
| Fixed Asset Turnover | 47.02 | 16.61 |
| Payout Ratio | 20.78% | 0% |
| Dividend Yield | 0.58% | 0% |
Interpretation of Financial Ratios
ROP shows solid financial health with a positive ROE and ROIC, indicating effective use of equity and capital. However, PD displays significant operating losses, evident in negative ratios across the board, suggesting high risk and potential liquidity issues. Investors should be cautious with PD, while ROP appears to be a more stable choice.
Dividend and Shareholder Returns
Roper Technologies, Inc. (ROP) maintains a solid dividend policy with a payout ratio of approximately 21% and a dividend yield of 0.58%. This suggests a sustainable approach, supported by robust free cash flow. Conversely, PagerDuty, Inc. (PD) does not distribute dividends, focusing instead on reinvestment for growth. Although this strategy aligns with long-term value creation, the company must ensure it manages its losses effectively to enhance shareholder returns in the future. Overall, ROP’s dividend strategy appears more favorable for immediate income, while PD’s growth-focused approach may yield value over time.
Strategic Positioning
Roper Technologies, Inc. (ROP) holds a robust position in the industrial machinery sector with a market cap of approximately 48B and a diverse portfolio of engineered products and software solutions. Its competitive edge lies in its extensive range of offerings and strong market share in specialized software. Conversely, PagerDuty, Inc. (PD), with a market cap of about 1.2B, faces intense competition in the digital operations management space but has opportunities for growth through machine learning innovations. Both companies are navigating technological disruptions that could reshape their respective markets.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD) over the past year, highlighting key price dynamics and overall trends.
Trend Analysis
Roper Technologies, Inc. (ROP) Over the past year, ROP has experienced a price decline of -14.86%. This indicates a bearish trend characterized by deceleration. The stock reached a notable high of 588.38 and a low of 443.75. The standard deviation of 30.2 suggests significant volatility in its trading prices.
In the recent period from September 14, 2025, to November 30, 2025, ROP’s price dropped by -13.11% with a lower standard deviation of 28.17, indicating a slight reduction in volatility. The trend slope during this timeframe is -7.39, further confirming the current bearish sentiment.
PagerDuty, Inc. (PD) PD has seen a more pronounced decline of -28.8% over the past year, marking a bearish trend with deceleration. The stock has fluctuated between a high of 26.23 and a low of 13.92. The standard deviation of 2.91 implies lower volatility compared to ROP.
In the recent analysis from September 14, 2025, to November 30, 2025, PD’s price change was -7.66%, accompanied by a very low standard deviation of 0.47, indicating minimal price fluctuations during this period. The trend slope is -0.12, suggesting a mild decreasing price trajectory.
In summary, both stocks are exhibiting bearish trends, with ROP showing higher volatility than PD. Investors should consider these trends and volatility metrics when evaluating potential investment decisions.
Analyst Opinions
Recent analyst recommendations for Roper Technologies, Inc. (ROP) indicate a “B+” rating, suggesting a hold position. Analysts highlight concerns regarding its debt-to-equity ratio, which received a lower score of 2, despite strong performance in return on assets and equity. Conversely, PagerDuty, Inc. (PD) has garnered an “A-” rating, leading to a consensus buy recommendation. Analysts praise its exceptional return on equity and assets, scoring 5 in both categories, along with a minimal debt-to-equity ratio of 1. As of 2025, the consensus leans towards buying PD while holding ROP.
Stock Grades
I have gathered the latest stock grades for Roper Technologies, Inc. and PagerDuty, Inc. to help you evaluate their performance.
Roper Technologies, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | downgrade | Sector Perform | 2025-10-27 |
| Barclays | maintain | Underweight | 2025-10-27 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Raymond James | maintain | Strong Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Jefferies | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-17 |
| JP Morgan | downgrade | Underweight | 2025-10-15 |
| Barclays | maintain | Underweight | 2025-10-01 |
| Truist Securities | maintain | Buy | 2025-07-22 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | maintain | Buy | 2025-11-19 |
| Canaccord Genuity | maintain | Buy | 2025-09-04 |
| Baird | maintain | Neutral | 2025-09-04 |
| RBC Capital | maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| Truist Securities | maintain | Buy | 2025-05-30 |
| JP Morgan | maintain | Underweight | 2025-05-30 |
| RBC Capital | maintain | Outperform | 2025-05-30 |
| TD Securities | maintain | Hold | 2025-05-21 |
| Morgan Stanley | maintain | Equal Weight | 2025-04-16 |
Overall, Roper Technologies is seeing a mixed trend with some downgrades, particularly from RBC Capital and JP Morgan, while PagerDuty maintains a consistent hold on its positive ratings, with multiple “Buy” grades from different analysts. This suggests a cautious but potentially favorable outlook for PagerDuty compared to Roper Technologies in the near term.
Target Prices
The consensus target prices for Roper Technologies, Inc. and PagerDuty, Inc. suggest a positive outlook from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Roper Technologies, Inc. | 650 | 506 | 574.2 |
| PagerDuty, Inc. | 16 | 15 | 15.5 |
For Roper Technologies, the target consensus of 574.2 indicates significant upside potential, given its current price of 445.68. Meanwhile, PagerDuty’s consensus target of 15.5 is slightly above its current price of 12.80, suggesting modest growth expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD) based on their recent performance data.
| Criterion | Roper Technologies (ROP) | PagerDuty (PD) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (22% net margin) | Negative (-9% net margin) |
| Innovation | Strong | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Leading | Growing |
| Debt level | Moderate (24% debt ratio) | High (50% debt ratio) |
Key takeaways from the analysis indicate that ROP showcases strong profitability and a robust global presence, making it a reliable option for investors. In contrast, PD’s negative profitability and high debt levels introduce significant risks, necessitating caution for potential investors.
Risk Analysis
This table outlines the potential risks associated with two companies, Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD).
| Metric | Roper Technologies, Inc. | PagerDuty, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
Roper Technologies operates in a stable industrial sector with moderate risks, while PagerDuty faces higher operational and market risks due to its reliance on tech trends and economic conditions. Recent shifts towards digital operations management raise concerns about competition and profitability for PagerDuty.
Which one to choose?
When comparing Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD), ROP demonstrates superior financial stability with a market cap of approximately $56B, strong profit margins (net margin at 22%) and solid profitability metrics. ROP’s stock trend is bearish, with a 14.86% decline over the past year. In contrast, PD has a market cap of around $1.7B and has faced a more significant downturn of 28.8%. PD’s financials reflect ongoing losses, evident in its negative EBIT margins and high debt-to-equity ratio. Analysts rate ROP with a B+ and PD with an A-, indicating a preference for ROP in terms of overall stability.
Investors focused on growth may prefer PD for its potential, while those prioritizing stability and profitability may favor ROP. However, both companies face risks associated with competition and market volatility.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Roper Technologies, Inc. and PagerDuty, Inc. to enhance your investment decisions:
