In the fast-evolving software application industry, PagerDuty, Inc. and Domo, Inc. stand out as innovators transforming how businesses manage data and operations. PagerDuty excels in digital operations management using machine learning, while Domo provides a cloud-based business intelligence platform connecting employees to real-time insights. This comparison will help investors identify which company offers the most compelling growth and value opportunities in 2026. Let’s explore which stock deserves a place in your portfolio.
Table of contents
Companies Overview
I will begin the comparison between PagerDuty and Domo by providing an overview of these two companies and their main differences.
PagerDuty Overview
PagerDuty, Inc. operates a digital operations management platform that collects data signals from software-enabled systems and devices, using machine learning to correlate and predict issues. Founded in 2009 and headquartered in San Francisco, PagerDuty serves multiple industries including technology, telecommunications, retail, and financial services. It is listed on the NYSE with a market cap of about 1.03B USD.
Domo Overview
Domo, Inc. offers a cloud-based business intelligence platform that connects people, data, and systems within organizations, enabling real-time data access and business management via smartphones. Incorporated in 2010 and based in American Fork, Utah, Domo trades on NASDAQ and has a market cap near 257M USD. It focuses on delivering insights across all employee levels.
Key similarities and differences
Both PagerDuty and Domo operate in the software application industry, providing platforms that enhance business operations through data integration and real-time insights. PagerDuty emphasizes digital operations management with machine learning, while Domo centers on business intelligence and user connectivity. PagerDuty’s market cap and workforce are significantly larger than Domo’s, reflecting differences in scale and possibly market reach.
Income Statement Comparison
This table presents the latest fiscal year income statement metrics for PagerDuty, Inc. and Domo, Inc., allowing a side-by-side financial performance comparison.
| Metric | PagerDuty, Inc. (PD) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Cap | 1.03B | 257M |
| Revenue | 467.5M | 317M |
| EBITDA | -11.9M | -50.0M |
| EBIT | -32.5M | -59.3M |
| Net Income | -42.7M | -81.9M |
| EPS | -0.59 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
PagerDuty, Inc.
PagerDuty demonstrated a consistent upward trend in revenue, growing by 119% over 2021-2025, with net income losses narrowing by 38%. Gross margins remained strong near 83%, while net margins improved significantly to -9.14% in 2025. The latest year showed solid revenue growth of 8.5%, improved EBIT by 55%, and stronger net margin, indicating operational progress.
Domo, Inc.
Domo’s revenue increased 51% over five years but declined slightly by 0.6% in the latest year. Net income remained negative with marginal improvement overall, but net margins stayed weak at -25.84%. Gross margin was favorable at 74%, though EBIT margin worsened to -18.7%. The recent year reflected a stall in growth and deteriorating profitability metrics.
Which one has the stronger fundamentals?
PagerDuty exhibits stronger fundamentals, supported by higher revenue growth, better gross margin, and improving net and EBIT margins. It also shows favorable trends in profitability and earnings per share growth. Domo, however, struggles with declining recent revenue and wider losses, reflected in its unfavorable income statement evaluation. Overall, PagerDuty’s income statement profile appears more robust.
Financial Ratios Comparison
The table below presents the latest available financial ratios for PagerDuty, Inc. and Domo, Inc., providing a snapshot of key performance and financial health indicators for the fiscal year 2025.
| Ratios | PagerDuty, Inc. (PD) | Domo, Inc. (DOMO) |
|---|---|---|
| ROE | -32.9% | 46.2% |
| ROIC | -9.7% | 194.7% |
| P/E | -39.9 | -4.0 |
| P/B | 13.1 | -1.8 |
| Current Ratio | 1.87 | 0.56 |
| Quick Ratio | 1.87 | 0.56 |
| D/E | 3.57 | -0.76 |
| Debt-to-Assets | 50.0% | 63.2% |
| Interest Coverage | -6.46 | -2.99 |
| Asset Turnover | 0.50 | 1.48 |
| Fixed Asset Turnover | 16.6 | 8.17 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
PagerDuty, Inc.
PagerDuty shows a mixed ratio profile with more unfavorable indicators, notably a negative net margin of -9.14% and return on equity at -32.92%, signaling profitability challenges. Its current and quick ratios near 1.87 suggest solid short-term liquidity, but high debt levels and weak interest coverage raise concerns. The company does not pay dividends, likely reflecting reinvestment in growth and R&D priorities.
Domo, Inc.
Domo presents a more balanced ratio set with 50% favorable metrics, including a strong return on equity of 46.23% and return on invested capital at 194.73%. However, its current and quick ratios below 1 indicate liquidity issues, and a high debt-to-assets ratio of 63.23% is unfavorable. Like PagerDuty, Domo does not pay dividends, likely due to ongoing reinvestment and growth strategies.
Which one has the best ratios?
Domo holds a more favorable ratio balance at 50%, demonstrating stronger returns and asset efficiency, but faces liquidity and leverage weaknesses. PagerDuty exhibits more unfavorable ratios, particularly in profitability and leverage, despite better liquidity. Overall, Domo’s ratios suggest a somewhat stronger financial position, though both companies carry notable risks.
Strategic Positioning
This section compares the strategic positioning of PagerDuty, Inc. and Domo, Inc., including Market position, Key segments, and exposure to technological disruption:
PagerDuty, Inc.
- Mid-size market cap of 1B USD with moderate competitive pressure in digital operations management.
- Focuses on digital operations management across various industries including tech, telecom, retail, and financial services.
- Leverages machine learning for data correlation and prediction, indicating moderate exposure to technological disruption.
Domo, Inc.
- Smaller market cap of 257M USD, facing higher volatility and competitive pressure in cloud BI platform space.
- Concentrates on cloud-based business intelligence with subscription and professional services as main revenue drivers.
- Cloud platform delivering real-time data insights, suggesting strong exposure to evolving cloud and data technologies.
PagerDuty, Inc. vs Domo, Inc. Positioning
PagerDuty adopts a diversified sector approach serving multiple industries, offering resilience but facing broader competition. Domo focuses on a concentrated cloud BI niche with subscription growth, enabling specialization but greater market sensitivity.
Which has the best competitive advantage?
Domo demonstrates a very favorable moat with a strong ROIC above WACC and growing profitability, indicating a durable competitive advantage. PagerDuty shows a slightly unfavorable moat, shedding value despite improving ROIC trends.
Stock Comparison
The stock price chart highlights significant bearish trends for both PagerDuty, Inc. and Domo, Inc. over the past 12 months, marked by notable price declines and decelerating downward momentum.
Trend Analysis
PagerDuty, Inc. experienced a bearish trend with a price decline of -51.76% over the past year, showing deceleration in its downward momentum. The stock reached a high of 24.66 and a low of 11.22, with a standard deviation of 2.92 indicating moderate volatility.
Domo, Inc. also displayed a bearish trend with a -44.54% price change over the last 12 months, accompanied by deceleration. Its price fluctuated between 18.06 and 6.15, with a slightly higher volatility reflected by a standard deviation of 3.01.
Comparing both stocks, PagerDuty, Inc. posted the larger percentage decline, indicating that Domo, Inc. delivered relatively better market performance over the analyzed period.
Target Prices
Analysts present a cautiously optimistic target consensus for PagerDuty, Inc. and Domo, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| PagerDuty, Inc. | 19 | 15 | 16.2 |
| Domo, Inc. | 13 | 10 | 11.5 |
The target consensus for PagerDuty at 16.2 suggests a potential upside from the current 11.22 price, while Domo’s consensus at 11.5 also indicates room for growth above its current 6.15 price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for PagerDuty, Inc. and Domo, Inc.:
Rating Comparison
PD Rating
- Rating: A- indicating a very favorable overall assessment of PagerDuty.
- Discounted Cash Flow Score: 5, showing a very favorable valuation outlook.
- ROE Score: 5, indicating very favorable efficiency in generating equity profit.
- ROA Score: 5, showing very favorable asset utilization by PagerDuty.
- Debt To Equity Score: 1, indicating very unfavorable financial risk level.
- Overall Score: 4, a favorable summary of PagerDuty’s financial standing.
DOMO Rating
- Rating: C reflecting a very favorable overall assessment of Domo.
- Discounted Cash Flow Score: 1, considered very unfavorable for valuation.
- ROE Score: 5, also very favorable in generating profit from equity.
- ROA Score: 1, very unfavorable efficiency in asset utilization for Domo.
- Debt To Equity Score: 1, similarly very unfavorable financial risk.
- Overall Score: 2, a moderate overall score for Domo’s financial health.
Which one is the best rated?
Based strictly on the provided data, PagerDuty is better rated with a higher overall score (4 vs. 2) and superior discounted cash flow and return on assets scores. Both have equal ROE scores, but Domo’s other metrics are notably weaker.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score of PagerDuty, Inc. and Domo, Inc.:
PD Scores
- Altman Z-Score: 1.26, in the distress zone indicating high bankruptcy risk.
- Piotroski Score: 7, indicating strong financial health.
DOMO Scores
- Altman Z-Score: -10.10, in the distress zone indicating very high bankruptcy risk.
- Piotroski Score: 3, indicating very weak financial health.
Which company has the best scores?
Based on the provided data, PagerDuty has a higher Piotroski Score and a less negative Altman Z-Score compared to Domo. PagerDuty’s scores suggest relatively stronger financial health than Domo’s.
Grades Comparison
Here is the grades comparison for PagerDuty, Inc. and Domo, Inc. based on recent analyst evaluations:
PagerDuty, Inc. Grades
The following table shows recent grades from verified financial institutions 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 |
Overall, PagerDuty exhibits a mixed trend with multiple Buy and Outperform ratings balanced by some Hold and Sector Perform grades, indicating moderate analyst confidence.
Domo, Inc. Grades
The following table presents recent grades from recognized financial firms for Domo, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Lake Street | Maintain | Hold | 2025-12-05 |
| DA Davidson | Maintain | Neutral | 2025-12-01 |
| JMP Securities | Maintain | Market Outperform | 2025-09-10 |
| DA Davidson | Maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-08-28 |
| TD Cowen | Upgrade | Buy | 2025-08-26 |
| JMP Securities | Maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-25 |
Domo’s grades show a steady pattern of Buy and Outperform ratings, with no downgrades, suggesting consistent positive sentiment from analysts.
Which company has the best grades?
Domo, Inc. has received generally more favorable and stable grades than PagerDuty, Inc., with a consensus Buy versus PagerDuty’s Hold. This difference may influence investor confidence, potentially affecting portfolio decisions and risk assessments.
Strengths and Weaknesses
Below is a comparison table highlighting key strengths and weaknesses of PagerDuty, Inc. (PD) and Domo, Inc. (DOMO) based on the most recent financial and operational data available for 2025.
| Criterion | PagerDuty, Inc. (PD) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Limited product diversification; focused on digital operations management. | Moderate diversification with subscription and professional services revenue streams. |
| Profitability | Negative net margin (-9.14%) and ROIC (-9.66%), indicating value destruction despite improving ROIC trend. | Negative net margin (-25.84%) but very strong ROIC (194.73%) and ROE (46.23%), showing value creation with some profitability challenges. |
| Innovation | Moderate innovation in incident response and operational analytics. | Strong innovation reflected in increasing ROIC and asset turnover (1.48). |
| Global presence | Established global client base but no recent expansion data available. | Growing global reach supported by increasing subscription revenues. |
| Market Share | Competes in a niche market with growing ROIC but overall unfavorable financial ratios. | Increasing market penetration with durable competitive advantage and balanced ratio profile. |
Key takeaways: Domo demonstrates a stronger economic moat and value creation with higher profitability metrics and diversified revenue streams. PagerDuty shows improving profitability trends but still faces challenges in value destruction and financial health. Investors should weigh Domo’s growth potential against PagerDuty’s ongoing recovery efforts.
Risk Analysis
Below is a comparative table of key risks for PagerDuty, Inc. (PD) and Domo, Inc. (DOMO) based on their latest financial and operational data for 2025.
| Metric | PagerDuty, Inc. (PD) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | Moderate (beta 0.63) | High (beta 1.65) |
| Debt level | High (Debt to Equity 3.57, Debt to Assets 50%) | Moderate to High (Debt to Equity negative but Debt to Assets 63%) |
| Regulatory Risk | Moderate (US and international markets) | Moderate (US and international markets) |
| Operational Risk | Moderate (negative net margin -9.14%) | High (negative net margin -25.84%) |
| Environmental Risk | Low (software industry focus) | Low (software industry focus) |
| Geopolitical Risk | Moderate (exposure to US, Japan, and international) | Moderate (exposure to US, Japan, and international) |
PagerDuty faces significant financial leverage risk with high debt levels and negative profitability, though its market risk is lower due to a conservative beta. Domo shows higher market volatility and operational risk with deep losses and weaker liquidity, alongside a distress-level Altman Z-score indicating bankruptcy risk. Investors should weigh Domo’s higher return potential against its financial instability, while PagerDuty’s leverage and profitability issues require caution.
Which Stock to Choose?
PagerDuty, Inc. (PD) shows favorable income growth with revenue up 8.54% in 2025 and strong gross margin at 82.96%. However, profitability remains negative with a net margin of -9.14% and return on equity at -32.92%. Its debt levels and interest coverage are unfavorable, but the overall rating is very favorable (A-).
Domo, Inc. (DOMO) presents weaker income trends with slight revenue decline of -0.61% in 2025 and lower gross margin at 74.45%. Profitability is also negative with net margin at -25.84%, but it reports favorable return on equity at 46.23% and ROIC at 194.73%. The company’s liquidity ratios are unfavorable, and it holds a moderate overall rating (C).
For investors seeking growth based on income statement momentum and financial stability, PagerDuty’s favorable income growth and rating might appear more attractive despite some profitability challenges. Conversely, Domo’s strong ROE and ROIC could appeal to more risk-tolerant investors focused on value creation potential and competitive advantage durability.
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 PagerDuty, Inc. and Domo, Inc. to enhance your investment decisions:
