In today’s fast-evolving tech landscape, DocuSign, Inc. and PagerDuty, Inc. stand out as leaders transforming how businesses operate. Both companies excel in software applications, focusing on digital workflows and operational efficiency, making them direct competitors in the broader tech ecosystem. This comparison explores their innovation strategies and market potential to help you decide which company could be the smarter addition to your investment portfolio. Let’s uncover which one offers the best opportunity for growth.
Table of contents
Companies Overview
I will begin the comparison between DocuSign and PagerDuty by providing an overview of these two companies and their main differences.
DocuSign Overview
DocuSign, Inc. offers electronic signature software and related contract lifecycle management solutions, enabling businesses to digitally prepare, sign, and manage agreements worldwide. Positioned as a leader in digital transaction management, DocuSign serves enterprise, commercial, and small business clients with AI-driven tools and industry-specific cloud offerings. The company is headquartered in San Francisco and has a market capitalization of approximately 11.4B USD.
PagerDuty Overview
PagerDuty, Inc. operates a digital operations management platform that uses machine learning to analyze data signals from software-enabled systems, helping businesses predict and resolve issues. It serves multiple industries including technology, telecommunications, and financial services. Founded in 2009 and based in San Francisco, PagerDuty has a market capitalization near 1.0B USD and focuses on enhancing operational reliability through its platform.
Key similarities and differences
Both DocuSign and PagerDuty operate in the software application industry and are headquartered in San Francisco. While DocuSign specializes in digital signature and agreement management solutions, PagerDuty focuses on digital operations and incident management. DocuSign’s business model emphasizes contract automation and AI-driven analytics, whereas PagerDuty prioritizes real-time operational intelligence and machine learning for issue detection across diverse industries.
Income Statement Comparison
The table below compares key income statement metrics for DocuSign, Inc. and PagerDuty, Inc. for the fiscal year 2025.
| Metric | DocuSign, Inc. | PagerDuty, Inc. |
|---|---|---|
| Market Cap | 11.36B | 1.03B |
| Revenue | 2.98B | 468M |
| EBITDA | 357M | -11.9M |
| EBIT | 249M | -32.5M |
| Net Income | 1.07B | -54.5M |
| EPS | 5.23 | -0.59 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
DocuSign, Inc.
DocuSign’s revenue nearly doubled from 2021 to 2025, reaching $3B, with net income turning sharply positive to $1.07B in 2025 from losses in earlier years. The gross margin remained strong at 79.12%, while EBIT margin showed modest improvement to 8.38%. The latest fiscal year saw solid revenue growth of 7.78%, accompanied by a substantial net margin expansion, reflecting improved operational efficiency.
PagerDuty, Inc.
PagerDuty’s revenue increased steadily from $214M in 2021 to $468M in 2025, with net losses narrowing to $42.7M. Gross margin improved favorably to 82.96%, but EBIT and net margins remained negative at -6.95% and -9.14%, respectively. The most recent year showed positive momentum with 8.54% revenue growth and meaningful margin improvements, indicating progress toward profitability despite ongoing losses.
Which one has the stronger fundamentals?
DocuSign demonstrates stronger fundamentals with robust revenue and net income growth, favorable margins, and a positive net margin in 2025. PagerDuty shows encouraging revenue gains and margin improvements but continues to report negative net and EBIT margins. While both companies have favorable income statement trends, DocuSign’s profitability and margin expansion position it with a more solid financial footing.
Financial Ratios Comparison
Below is a comparison of key financial ratios for DocuSign, Inc. and PagerDuty, Inc. based on their latest fiscal year 2025 data.
| Ratios | DocuSign, Inc. (DOCU) | PagerDuty, Inc. (PD) |
|---|---|---|
| ROE | 53.3% | -32.9% |
| ROIC | 9.1% | -9.7% |
| P/E | 18.5 | -39.9 |
| P/B | 9.87 | 13.12 |
| Current Ratio | 0.81 | 1.87 |
| Quick Ratio | 0.81 | 1.87 |
| D/E | 0.06 | 3.57 |
| Debt-to-Assets | 3.1% | 50.0% |
| Interest Coverage | 129.0 | -6.46 |
| Asset Turnover | 0.74 | 0.50 |
| Fixed Asset Turnover | 7.28 | 16.61 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
DocuSign, Inc.
DocuSign presents a generally strong financial profile with favorable net margin at 35.87% and a high return on equity of 53.32%, though its price-to-book ratio and current ratio are less favorable. The company does not pay dividends, indicating a possible focus on reinvestment or growth, with no dividend yield reported.
PagerDuty, Inc.
PagerDuty shows several weak financial ratios, including a negative net margin of -9.14% and a return on equity at -32.92%, suggesting profitability challenges. However, liquidity ratios like the current and quick ratios are favorable. PagerDuty also does not pay dividends, likely prioritizing reinvestment or development amid ongoing losses.
Which one has the best ratios?
DocuSign holds a more favorable ratio profile overall, with a higher proportion of positive indicators and stronger profitability metrics compared to PagerDuty’s predominantly unfavorable ratios. While neither company pays dividends, DocuSign’s financial health appears more robust based on the evaluated metrics.
Strategic Positioning
This section compares the strategic positioning of DocuSign and PagerDuty, including market position, key segments, and exposure to technological disruption:
DocuSign, Inc.
- Large market cap of 11.4B USD, faces competitive pressure in e-signature software
- Key revenue from subscription-based electronic signature solutions and professional services
- Exposed to AI-driven contract lifecycle management and e-signature technology innovations
PagerDuty, Inc.
- Smaller market cap of 1B USD, competes in digital operations management platform space
- Serves multiple industries with a digital operations platform leveraging machine learning
- Exposure to machine learning and predictive analytics technologies in operations management
DocuSign vs PagerDuty Positioning
DocuSign has a concentrated focus on electronic signature and contract management, generating most revenue from subscriptions, while PagerDuty offers a diversified platform across industries with machine learning. DocuSign’s scale offers market strength; PagerDuty’s breadth targets varied sectors.
Which has the best competitive advantage?
DocuSign shows a slightly favorable moat with growing profitability despite shedding value, indicating improving competitive positioning. PagerDuty has a slightly unfavorable moat, shedding value but also improving profitability, suggesting weaker competitive advantage compared to DocuSign.
Stock Comparison
The stock price movements of DocuSign, Inc. (DOCU) and PagerDuty, Inc. (PD) over the past 12 months reveal contrasting trends, with DOCU showing overall gains despite recent declines, while PD exhibits persistent weakness amid increasing trading volume.
Trend Analysis
DocuSign, Inc. experienced a bullish trend over the past 12 months with a 9.63% price increase, though showing deceleration in momentum. The stock ranged from a low of 50.84 to a high of 106.99, with recent weeks marked by a 22.46% decline.
PagerDuty, Inc. displayed a bearish trend over the same period, dropping 51.76% with decelerating downward momentum. Its price fluctuated between 11.22 and 24.66, with recent losses deepening by 30.14%, accompanied by rising trading volume.
Comparing both, DocuSign delivered significantly stronger market performance than PagerDuty, maintaining a positive overall trend while PagerDuty’s stock value sharply diminished over the past year.
Target Prices
Analysts provide a clear consensus on target prices for DocuSign, Inc. and PagerDuty, Inc., reflecting moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| DocuSign, Inc. | 88 | 70 | 76.86 |
| PagerDuty, Inc. | 19 | 15 | 16.2 |
The consensus target prices for both companies are significantly above their current stock prices, indicating analysts expect price appreciation. DocuSign’s target suggests a strong rebound from $56.71, while PagerDuty’s target also exceeds its $11.22 current price notably.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for DocuSign, Inc. and PagerDuty, Inc.:
Rating Comparison
DocuSign, Inc. Rating
- Rating: B+, considered Very Favorable by analysts.
- Discounted Cash Flow Score: 5, indicating a very favorable valuation based on future cash flows.
- ROE Score: 4, showing favorable efficiency in generating profit from equity.
- ROA Score: 4, indicating favorable asset utilization to generate earnings.
- Debt To Equity Score: 3, moderate financial risk in terms of leverage.
- Overall Score: 3, reflecting a moderate overall financial standing.
PagerDuty, Inc. Rating
- Rating: A-, also rated Very Favorable by analysts.
- Discounted Cash Flow Score: 5, matching DocuSign with a very favorable valuation.
- ROE Score: 5, reflecting very favorable profitability from equity.
- ROA Score: 5, indicating very favorable effectiveness in asset use.
- Debt To Equity Score: 1, indicating very unfavorable financial risk due to high leverage.
- Overall Score: 4, showing a favorable overall financial standing.
Which one is the best rated?
PagerDuty holds a superior rating overall with an A- compared to DocuSign’s B+. PagerDuty scores higher on ROE, ROA, and overall metrics, despite a less favorable debt-to-equity score, indicating stronger profitability and efficiency.
Scores Comparison
Here is a comparison of DocuSign and PagerDuty scores based on Altman Z-Score and Piotroski Score:
DocuSign Scores
- Altman Z-Score: 4.43, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 5, categorized as average financial strength.
PagerDuty Scores
- Altman Z-Score: 1.26, indicating distress zone with high bankruptcy risk.
- Piotroski Score: 7, categorized as strong financial strength.
Which company has the best scores?
DocuSign shows a significantly better Altman Z-Score, suggesting stronger financial stability, while PagerDuty has a higher Piotroski Score indicating stronger financial health. The scores reflect different strengths for each company.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to DocuSign, Inc. and PagerDuty, Inc.:
DocuSign, Inc. Grades
The following table summarizes recent grades from notable grading companies for DocuSign, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Evercore ISI Group | Maintain | In Line | 2025-12-05 |
| UBS | Maintain | Neutral | 2025-12-05 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-05 |
| Piper Sandler | Maintain | Neutral | 2025-12-05 |
| RBC Capital | Maintain | Sector Perform | 2025-12-05 |
| JP Morgan | Maintain | Neutral | 2025-12-05 |
| B of A Securities | Maintain | Neutral | 2025-12-05 |
| Needham | Maintain | Hold | 2025-12-05 |
| Baird | Maintain | Neutral | 2025-12-05 |
DocuSign’s grades predominantly indicate a neutral to hold stance, reflecting a steady but cautious outlook from analysts.
PagerDuty, Inc. Grades
The following table summarizes recent grades from notable grading companies for PagerDuty, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Buy | 2026-01-07 |
| RBC Capital | Downgrade | Sector Perform | 2026-01-05 |
| TD Cowen | Maintain | Buy | 2025-11-26 |
| Craig-Hallum | Downgrade | Hold | 2025-11-26 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-26 |
| RBC Capital | Maintain | Outperform | 2025-11-26 |
| Truist Securities | Maintain | Buy | 2025-11-19 |
| Baird | Maintain | Neutral | 2025-09-04 |
| RBC Capital | Maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | Maintain | Buy | 2025-09-04 |
PagerDuty’s grades range from hold to buy, with some downgrades but also strong buy recommendations, showing a more varied analyst sentiment.
Which company has the best grades?
PagerDuty, Inc. has received comparatively stronger grades with multiple buy and outperform ratings, while DocuSign, Inc. is mostly rated neutral or hold. This difference may influence investors seeking growth potential versus those preferring stability.
Strengths and Weaknesses
Below is a comparison of the key strengths and weaknesses of DocuSign, Inc. (DOCU) and PagerDuty, Inc. (PD) based on their recent financial and strategic data.
| Criterion | DocuSign, Inc. (DOCU) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from Subscription & Services | Limited: Primarily focused on incident response software |
| Profitability | Favorable net margin (35.87%) and ROE (53.32%) | Unfavorable net margin (-9.14%) and ROE (-32.92%) |
| Innovation | Growing ROIC trend (+167.8%), slightly favorable moat | Slightly unfavorable moat, but ROIC improving slightly |
| Global presence | Strong global reach with expanding subscription base | Growing but less diversified global presence |
| Market Share | Leading in e-signature and digital agreement market | Niche player in IT incident response market |
Key takeaways: DocuSign shows stronger profitability and a solid growth trajectory in its core market, supported by a slightly favorable economic moat. PagerDuty struggles with profitability and value creation but shows some improvement in ROIC, indicating potential if operational issues are resolved.
Risk Analysis
Below is a comparison of key risk factors for DocuSign, Inc. (DOCU) and PagerDuty, Inc. (PD) based on the most recent data from 2025.
| Metric | DocuSign, Inc. (DOCU) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | Moderate (Beta 0.99) | Lower (Beta 0.63) |
| Debt level | Low (D/E 0.06) | High (D/E 3.57) |
| Regulatory Risk | Moderate (Tech sector) | Moderate (Tech sector) |
| Operational Risk | Moderate (Complex SaaS) | Moderate (Platform ops) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (US-based) | Moderate (US-based) |
The most impactful and likely risks are PagerDuty’s high debt level and negative profitability metrics, increasing financial distress risk. DocuSign’s moderate market risk and liquidity concerns warrant caution, though it shows stronger financial health overall. Both face typical tech sector regulatory and geopolitical risks.
Which Stock to Choose?
DocuSign, Inc. (DOCU) has shown a favorable income evolution with significant growth in net margin and earnings per share over 2021-2025. Its financial ratios indicate strong profitability, low debt levels, and a very favorable rating of B+. The company exhibits a slightly favorable moat with improving ROIC, though liquidity ratios remain weak.
PagerDuty, Inc. (PD) also demonstrates a favorable income statement with revenue growth and improving margins, but profitability ratios are unfavorable with negative net margin and ROE. PD carries higher debt, reflected in an unfavorable debt-related ratio profile, yet holds a very favorable A- rating. The moat evaluation is slightly unfavorable due to value destruction despite growing ROIC.
Investors prioritizing financial stability and profitability might find DocuSign more favorable given its stronger income growth, profitability, and moderate debt risk. Conversely, those with a higher risk tolerance focusing on potential growth in innovative tech solutions could interpret PagerDuty’s improving income and strong rating as promising despite its financial challenges.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of DocuSign, Inc. and PagerDuty, Inc. to enhance your investment decisions:
