In today’s competitive technology landscape, two companies stand out: EPAM Systems, Inc. and PagerDuty, Inc. Both firms operate within the information technology sector, focusing on innovative software solutions but target different market segments. EPAM excels in digital platform engineering and software development, while PagerDuty specializes in digital operations management. As an investor, understanding their unique strengths and market strategies can help determine which company may offer greater potential for growth. Let’s dive deeper to uncover the more compelling investment opportunity.
Table of contents
Company Overview
EPAM Overview
EPAM Systems, Inc. is a leading global provider of digital platform engineering and software development services. Established in 1993 and headquartered in Newtown, Pennsylvania, EPAM has positioned itself as a key player in the Information Technology Services industry, focusing on delivering comprehensive engineering services, infrastructure management, and consulting solutions. With a market capitalization of approximately $10.3B, the company leverages its expertise in various sectors including financial services, healthcare, and technology. EPAM’s mission emphasizes innovation and efficiency, helping clients enhance their software development capabilities through advanced automation and integrated engineering practices.
PagerDuty Overview
PagerDuty, Inc., founded in 2009 and based in San Francisco, California, is a prominent player in the Software – Application sector, specializing in digital operations management. With a market cap of around $1.15B, PagerDuty’s platform utilizes machine learning to optimize operations by processing digital signals from various software systems. The company’s mission is to empower organizations to improve their operational efficiency and responsiveness in a fast-paced digital landscape. PagerDuty serves a diverse range of industries, including telecommunications and retail, focusing on predictive analytics to streamline incident management.
Key similarities between EPAM and PagerDuty lie in their commitment to technology innovation and service optimization. However, while EPAM focuses more on software development and engineering services, PagerDuty emphasizes operational management through data analytics and machine learning. This distinction reflects their unique approaches to addressing market needs within the technology landscape.
Income Statement Comparison
The following table provides a comparison of key income statement metrics for EPAM Systems, Inc. and PagerDuty, Inc. for their most recent fiscal years.
| Metric | EPAM Systems, Inc. | PagerDuty, Inc. |
|---|---|---|
| Revenue | 4.73B | 467.50M |
| EBITDA | 671.69M | -11.89M |
| EBIT | 544.58M | -32.50M |
| Net Income | 454.53M | -42.74M |
| EPS | 7.93 | -0.59 |
Interpretation of Income Statement
In the most recent fiscal year, EPAM Systems demonstrated a stable revenue growth of 4.3% from the previous year, accompanied by an increase in net income, reflecting strong operational efficiency. Despite slight fluctuations in EBITDA margins, the company maintained profitability. Conversely, PagerDuty reported a revenue increase from the prior year but faced significant losses, indicating challenges in operational costs and profitability. The negative EBITDA and net income suggest ongoing investments may be impacting short-term financial performance. Overall, EPAM appears to be a more stable investment compared to PagerDuty, which warrants careful consideration regarding risk.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent financial ratios for EPAM Systems, Inc. (EPAM) and PagerDuty, Inc. (PD). This will help us understand their financial health and performance metrics.
| Metric | EPAM | PD |
|---|---|---|
| ROE | 12.52% | -32.92% |
| ROIC | 10.67% | -10.07% |
| P/E | 29.47 | -39.87 |
| P/B | 3.69 | 13.12 |
| Current Ratio | 2.96 | 1.87 |
| Quick Ratio | 2.96 | 1.87 |
| D/E | 0.045 | 3.57 |
| Debt-to-Assets | 3.44% | 50.00% |
| Interest Coverage | N/A | -6.46 |
| Asset Turnover | 0.99 | 0.50 |
| Fixed Asset Turnover | 14.07 | 16.61 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
EPAM shows strong performance indicators, particularly with a healthy ROE and low debt ratios, indicating effective management and a solid capital structure. Conversely, PD displays concerning metrics, including negative ROE and very high debt ratios, highlighting significant financial risk. Investors should be cautious with PD due to its current operational struggles, while EPAM appears to be a more stable investment choice.
Dividend and Shareholder Returns
Both EPAM Systems, Inc. (EPAM) and PagerDuty, Inc. (PD) do not pay dividends, reflecting their focus on reinvestment strategies for growth. EPAM, with robust margins and a solid cash position, opts for share buybacks, enhancing shareholder value despite no dividends. Conversely, PD is in a high-growth phase but shows negative margins and significant debt, raising concerns about sustainability. While neither company distributes dividends, their approaches to capital allocation could impact long-term value creation for shareholders.
Strategic Positioning
EPAM Systems, Inc. holds a significant market share in the Information Technology Services sector, leveraging its comprehensive digital platform engineering and software development services. As of now, it faces competitive pressure from emerging technologies and firms that are innovating rapidly. Conversely, PagerDuty, Inc. operates in the Software – Application industry, focusing on digital operations management, and competes with other platforms that utilize advanced machine learning. Both companies must continuously adapt to technological disruptions to maintain their market positions.
Stock Comparison
In this section, I will provide an analysis of the stock price movements for EPAM Systems, Inc. (EPAM) and PagerDuty, Inc. (PD) over the past year, highlighting key price dynamics and trading behaviors.
Trend Analysis
EPAM Systems, Inc. (EPAM)
Over the past year, EPAM’s stock has experienced a significant decline, with a percentage change of -35.78%. This indicates a bearish trend, characterized by acceleration, as the stock has consistently lost value. The highest price recorded was 311.98, while the lowest was 142.38. The volatility, reflected by a standard deviation of 46.0, suggests notable fluctuations in price. Recently, however, there has been a positive shift with a 18.84% increase observed from September 14, 2025, to November 30, 2025, indicating some recovery despite the overall bearish sentiment.
PagerDuty, Inc. (PD)
PagerDuty has also faced a downward trend, with a price change of -40.75% over the past year, categorizing it as bearish. The acceleration status indicates deceleration, suggesting that the rate of decline is slowing down. The stock reached a high of 26.23 and a low of 12.63, while the standard deviation of 2.96 points to lower volatility compared to EPAM. In the recent period from September 14, 2025, to November 30, 2025, PD’s stock saw a further decline of 23.17%, indicating continued pressure in the market.
In summary, both stocks are currently in bearish trends, with EPAM showing signs of recovery in the short term, while PD continues to struggle with a significant downward trajectory.
Analyst Opinions
Recent analyst recommendations for EPAM Systems, Inc. (EPAM) indicate a “B+” rating, suggesting a hold stance due to solid performance in discounted cash flow and return on assets, but only moderate price-to-earnings metrics. Conversely, PagerDuty, Inc. (PD) has received an “A-” rating, indicating a strong buy recommendation, particularly due to high scores in return on equity and assets. The consensus for EPAM is hold, while PD is a buy for the current year, reflecting confidence in its growth potential.
Stock Grades
In the current market, stock ratings provide valuable insights into the performance expectations for companies. Here are the latest grades for EPAM Systems, Inc. and PagerDuty, Inc.
EPAM Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-09 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Barclays | maintain | Overweight | 2025-05-12 |
| Needham | maintain | Buy | 2025-05-09 |
| Guggenheim | maintain | Buy | 2025-05-09 |
| Piper Sandler | maintain | Neutral | 2025-05-09 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-09 |
| Stifel | maintain | Buy | 2025-05-02 |
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, both companies have maintained strong ratings, with several “Buy” and “Outperform” recommendations indicating positive investor sentiment. However, it is crucial to remain cautious and consider market conditions when making investment decisions.
Target Prices
Analysts have provided reliable target price data for two companies, indicating their expectations for future stock performance.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| EPAM Systems, Inc. | 185 | 175 | 180 |
| PagerDuty, Inc. | 16 | 15 | 15.5 |
For EPAM Systems, the consensus target price of 180 is slightly below the current stock price of 185.74, suggesting a potential for minor downward adjustment. Conversely, PagerDuty’s consensus of 15.5 is above its current price of 12.53, indicating a more optimistic outlook compared to its market performance.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of EPAM Systems, Inc. and PagerDuty, Inc. based on the most recent data available:
| Criterion | EPAM Systems, Inc. | PagerDuty, Inc. |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Moderate (9.61%) | Negative |
| Innovation | Strong | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Significant | Emerging |
| Debt level | Low (4.44%) | High (78.12%) |
Key takeaways indicate that while EPAM Systems benefits from strong profitability and low debt levels, PagerDuty faces challenges with negative profitability and high debt, presenting a higher risk for potential investors.
Risk Analysis
In this section, I will outline the risks associated with two companies, EPAM Systems, Inc. and PagerDuty, Inc., to help you make informed investment decisions.
| Metric | EPAM Systems, Inc. | PagerDuty, Inc. |
|---|---|---|
| Market Risk | Medium | High |
| Regulatory Risk | Low | Medium |
| Operational Risk | Medium | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | High | Medium |
Both companies face significant market risks, with EPAM dealing with high geopolitical risks due to its international operations. PagerDuty’s operational risks are heightened by its reliance on technology, which makes it susceptible to cybersecurity threats.
Which one to choose?
When comparing EPAM Systems (EPAM) and PagerDuty (PD), several factors come into play. EPAM demonstrates solid fundamentals, with a market cap of 13.4B and a revenue of 4.7B, showing a net profit margin of 9.6% and an overall rating of B+. Its stock trend has been bearish, but recent performance indicates a recovery with an 18.8% uptick. In contrast, PagerDuty has a market cap of 1.7B but struggles with consistent profitability, posting negative margins and a rating of A- due to its relatively better cash flow management.
Given these insights, investors focused on stability and growth may prefer EPAM, while those looking for potential turnaround opportunities might find PagerDuty appealing. However, both companies face significant risks, including competition and market dependence.
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 EPAM Systems, Inc. and PagerDuty, Inc. to enhance your investment decisions:
