In today’s fast-paced technology landscape, the competition between innovative software companies is fierce. I will compare Asana, Inc. (ASAN) and PagerDuty, Inc. (PD), both of which operate within the software application industry and offer distinct solutions for managing workflow and digital operations. Their market overlap and differing innovation strategies provide a compelling backdrop for analysis. Join me as I explore which of these companies presents the most intriguing investment opportunity for your portfolio.
Table of contents
Company Overview
Asana, Inc. Overview
Asana, Inc. is a leading provider of work management solutions, enabling teams to efficiently organize and orchestrate their workflows. Founded in 2008 and headquartered in San Francisco, Asana’s platform supports various industries, including technology, healthcare, and education. The company aims to streamline project management, facilitating everything from daily tasks to large-scale strategic initiatives. Currently, Asana holds a market cap of approximately $3.39B, positioning itself as a key player in the software application sector.
PagerDuty, Inc. Overview
PagerDuty, Inc. operates a digital operations management platform that integrates data signals from numerous software-enabled systems. Established in 2009 and also based in San Francisco, PagerDuty employs advanced machine learning to predict and address operational issues, serving industries such as telecommunications, media, and retail. With a market cap around $1.10B, PagerDuty emphasizes proactive incident management, thus enhancing organizational efficiency and response times.
Key similarities and differences
Both Asana and PagerDuty operate within the software application industry, focusing on enhancing operational efficiency. However, while Asana is centered on project and work management, PagerDuty specializes in incident and operations management, utilizing machine learning capabilities. This distinction defines their respective roles in supporting teams and organizations in achieving their objectives.
Income Statement Comparison
In this section, I will provide a comparative analysis of the income statements for Asana, Inc. (ASAN) and PagerDuty, Inc. (PD) for the fiscal year 2025.
| Metric | Asana, Inc. (ASAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Cap | 3.39B | 1.10B |
| Revenue | 724M | 467M |
| EBITDA | -230M | -12M |
| EBIT | -247M | -32M |
| Net Income | -256M | -43M |
| EPS | -1.11 | -0.59 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
The income statements reflect notable trends in revenue for both companies. Asana’s revenue increased to 724M in 2025, up from 652M in 2024, indicating a growth trajectory. In contrast, PagerDuty also saw revenue growth, climbing from 431M in 2024 to 467M in 2025. However, both companies reported substantial net losses, with Asana’s net income at -256M and PagerDuty’s at -43M for the fiscal year 2025. Although revenue growth is promising, the continued negative margins highlight the need for both firms to manage costs effectively and improve operational efficiencies to enhance profitability in the future.
Financial Ratios Comparison
The table below presents a comparison of key financial metrics and ratios for Asana, Inc. (ASAN) and PagerDuty, Inc. (PD) for the most recent fiscal year.
| Metric | ASAN | PD |
|---|---|---|
| ROE | -112.31% | -32.92% |
| ROIC | -54.04% | -10.07% |
| P/E | -19.16 | -39.87 |
| P/B | 21.52 | 13.12 |
| Current Ratio | 1.45 | 1.87 |
| Quick Ratio | 1.45 | 1.87 |
| D/E | 1.18 | 3.57 |
| Debt-to-Assets | 30.11% | 50.00% |
| Interest Coverage | -72.42 | -6.46 |
| Asset Turnover | 0.81 | 0.50 |
| Fixed Asset Turnover | 2.76 | 16.61 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Both companies exhibit concerning financial health, with negative returns on equity (ROE) and returns on invested capital (ROIC), indicating ongoing losses. ASAN shows a higher price-to-book (P/B) ratio, suggesting a premium valuation despite its struggles. PD has a significantly higher debt-to-equity (D/E) ratio, which raises concerns about financial leverage and risk. Overall, these ratios indicate that both companies face challenges that investors should consider carefully.
Dividend and Shareholder Returns
Asana, Inc. (ASAN) does not pay dividends, which aligns with its focus on reinvesting in growth and innovation during its current high-growth phase. This strategy may enhance long-term shareholder value, although it carries risks, such as potential negative cash flow sustainability. Meanwhile, PagerDuty, Inc. (PD) also refrains from dividend payments, opting instead to invest in operational enhancements. Both companies engage in share buybacks, indicating a commitment to returning value to shareholders, albeit through alternative means. Overall, the lack of dividends reflects strategic choices aimed at fostering sustainable long-term growth.
Strategic Positioning
Asana, Inc. (ASAN) holds a significant market share in the work management software sector, competing directly with PagerDuty, Inc. (PD). Both companies leverage cutting-edge technology to streamline operations for various industries. However, Asana’s broader application focus gives it a competitive edge. With increasing technological disruption, both companies face pressure to innovate continuously, but PagerDuty’s narrower scope may limit its market potential compared to Asana’s diverse offerings.
Stock Comparison
In analyzing the stock price movements of Asana, Inc. (ASAN) and PagerDuty, Inc. (PD) over the past year, we observe significant price dynamics, with both companies exhibiting bearish trends characterized by notable declines in their stock values.
Trend Analysis
Asana, Inc. (ASAN) Over the past year, ASAN’s stock has experienced a price change of -23.12%, indicating a bearish trend. The highest price reached during this period was 24.15, while the lowest was 11.53. The trend shows a deceleration, with volatility measured at a standard deviation of 2.93. Recent data reveals a slight improvement of 0.6% from September 21, 2025, to December 7, 2025, but the overall trajectory remains negative.
PagerDuty, Inc. (PD) PD’s stock has seen a more drastic decline of -54.19% over the past year, also classified as bearish. The stock hit a high of 26.23 and a low of 12.0, with a standard deviation of 3.03 indicating considerable volatility. The recent trend shows a decrease of -26.38% from September 21, 2025, to December 7, 2025, further confirming the ongoing bearish sentiment and deceleration in price movement.
Both companies are facing challenges in their stock performance, and the current trend suggests a cautious approach for potential investors.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for Asana, Inc. (ASAN) and PagerDuty, Inc. (PD). Asana has received a D+ rating, indicating a cautious stance, with analysts highlighting concerns over low financial performance metrics. In contrast, PagerDuty holds an A- rating, driven by strong discounted cash flow and return on equity scores, suggesting solid growth potential. The consensus for ASAN leans towards a sell, while PD is viewed more favorably, with a consensus recommendation to buy.
Stock Grades
In the current market landscape, here are the latest stock ratings for Asana, Inc. (ASAN) and PagerDuty, Inc. (PD).
Asana, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | maintain | Neutral | 2025-12-04 |
| Citigroup | maintain | Neutral | 2025-12-03 |
| UBS | maintain | Neutral | 2025-12-03 |
| RBC Capital | maintain | Underperform | 2025-12-03 |
| Morgan Stanley | maintain | Underweight | 2025-09-04 |
| Piper Sandler | maintain | Overweight | 2025-09-04 |
| Baird | maintain | Neutral | 2025-09-04 |
| JMP Securities | maintain | Market Outperform | 2025-06-04 |
| Scotiabank | maintain | Sector Perform | 2025-06-04 |
| Morgan Stanley | maintain | Underweight | 2025-06-04 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | maintain | Outperform | 2025-11-26 |
| Craig-Hallum | downgrade | Hold | 2025-11-26 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-26 |
| TD Cowen | maintain | Buy | 2025-11-26 |
| Truist Securities | maintain | Buy | 2025-11-19 |
| Baird | maintain | Neutral | 2025-09-04 |
| Canaccord Genuity | maintain | Buy | 2025-09-04 |
| RBC Capital | maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| Truist Securities | maintain | Buy | 2025-05-30 |
Overall, Asana’s ratings are predominantly neutral, indicating a cautious outlook from analysts. In contrast, PagerDuty shows a mixed sentiment, with some firms maintaining strong ratings, while others have downgraded their positions. Investors should consider these trends when making decisions about their portfolios.
Target Prices
The consensus target prices for the analyzed companies reflect optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Asana, Inc. (ASAN) | 16 | 14 | 15 |
| PagerDuty, Inc. (PD) | 19 | 15 | 16.75 |
For Asana, the consensus target price of 15 indicates a modest upside from its current price of 14.285. Meanwhile, PagerDuty’s consensus of 16.75 suggests significant potential based on its current price of 12.015, reflecting positive analyst sentiment.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Asana, Inc. (ASAN) and PagerDuty, Inc. (PD) based on the most recent data.
| Criterion | Asana, Inc. | PagerDuty, Inc. |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Negative margins | Negative margins |
| Innovation | High | Moderate |
| Global presence | Moderate | High |
| Market Share | Low | Moderate |
| Debt level | Moderate | High |
In summary, both companies show negative profitability margins, which is a significant concern. Asana has a higher level of innovation, while PagerDuty benefits from a stronger global presence. Risk management should be a priority when considering these stocks for investment.
Risk Analysis
The following table outlines key risks associated with Asana, Inc. (ASAN) and PagerDuty, Inc. (PD) as of the most recent fiscal year.
| Metric | Asana, Inc. (ASAN) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
In synthesizing these risks, I observe that both companies face significant market and operational risks, particularly given the volatility of the tech sector and ongoing regulatory scrutiny. Asana’s higher risk profile, reflected in its low ratings, suggests potential vulnerabilities that investors should consider before making investment decisions.
Which one to choose?
When comparing Asana, Inc. (ASAN) and PagerDuty, Inc. (PD), the fundamentals suggest that PagerDuty appears to be the stronger option for investors. PagerDuty showcases a higher gross profit margin of 83% compared to Asana’s 89%, yet it holds a much more favorable overall rating of A- versus Asana’s D+. While both companies are currently experiencing bearish trends in stock price, PagerDuty’s metrics indicate a more stable financial health, with a lower debt-to-equity ratio (3.57 vs. 1.18).
Investors focused on growth may prefer PagerDuty, given its robust analyst ratings and solid cash flow management, while those prioritizing high gross profit margins might lean towards Asana. However, specific risks such as intense competition and market dependence could impact both companies adversely.
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 Asana, Inc. and PagerDuty, Inc. to enhance your investment decisions:
