In the competitive landscape of application software, monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) stand out for their innovative approaches to work management and digital operations, respectively. Both companies operate in the same industry, yet they target different aspects of organizational efficiency. While monday.com focuses on visual work operating systems, PagerDuty excels in digital operations management through advanced data analytics. This article will help you determine which of these intriguing companies could be the more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
monday.com Ltd. Overview
monday.com Ltd. is a prominent player in the software application industry, primarily known for its Work OS platform, which provides customizable tools for work management across various sectors. Founded in 2012 and headquartered in Tel Aviv, Israel, the company has rapidly expanded its global footprint, offering solutions for project management, CRM, and marketing. As of now, monday.com has a market capitalization of approximately $7.46B, reflecting its robust growth and adoption in diverse organizational frameworks. The company’s mission focuses on enhancing productivity and collaboration through a flexible, cloud-based interface that encourages creativity and efficiency among teams.
PagerDuty, Inc. Overview
PagerDuty, Inc., established in 2009 and based in San Francisco, California, operates a digital operations management platform that serves a wide array of industries, including technology, retail, and telecommunications. With a market cap of around $1.10B, PagerDuty is positioned as a critical tool for managing operational events and incidents, utilizing advanced machine learning to predict and resolve potential issues. The company aims to empower businesses to enhance their operational reliability and efficiency, making it an essential partner for organizations reliant on sophisticated software systems.
Key Similarities and Differences
Both monday.com and PagerDuty operate within the software application industry, but their business models differ significantly. While monday.com emphasizes customizable work management solutions for organizations, PagerDuty focuses on digital operations management, leveraging machine learning for incident response. This distinction highlights monday.com’s collaborative tools versus PagerDuty’s operational analytics, catering to different needs within the technology ecosystem.
Income Statement Comparison
The following table provides a comparison of key income statement metrics for monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) based on their most recent fiscal years.
| Metric | monday.com Ltd. | PagerDuty, Inc. |
|---|---|---|
| Revenue | 972M | 467M |
| EBITDA | 58M | -12M |
| EBIT | 40M | -32M |
| Net Income | 32M | -43M |
| EPS | 0.65 | -0.59 |
Interpretation of Income Statement
In the most recent fiscal year, monday.com Ltd. showed a notable increase in revenue to 972M, reflecting a strong growth trend compared to the previous year’s 730M. This growth translated into a positive net income of 32M, a significant turnaround from a loss in prior years. Conversely, PagerDuty, Inc. experienced a revenue increase to 467M but continued to report a net loss of 43M, indicating ongoing challenges in controlling expenses, particularly in operating costs. Both companies illustrate the importance of margin management, with monday.com demonstrating improved profitability while PagerDuty’s situation highlights potential risks for investors.
Financial Ratios Comparison
The following table compares the most recent revenue and financial ratios for monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) to help you assess their financial health.
| Metric | MNDY | PD |
|---|---|---|
| ROE | 3.14% | -32.92% |
| ROIC | -1.73% | -10.07% |
| P/E | 362.98 | -39.87 |
| P/B | 11.41 | 13.12 |
| Current Ratio | 2.66 | 1.87 |
| Quick Ratio | 2.66 | 1.87 |
| D/E | 0.10 | 3.57 |
| Debt-to-Assets | 6.29% | 50.00% |
| Interest Coverage | N/A | -6.46 |
| Asset Turnover | 0.58 | 0.50 |
| Fixed Asset Turnover | 7.13 | 16.61 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios indicate mixed results for both companies. While MNDY shows a strong current and quick ratio, indicating good liquidity, its high P/E suggests overvaluation. Conversely, PD’s significant debt-to-equity ratio raises concerns about leverage and financial stability. Overall, both companies exhibit weaknesses in profitability and returns, warranting cautious consideration in investment decisions.
Dividend and Shareholder Returns
Both monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) do not currently pay dividends, which reflects their focus on reinvestment strategies aimed at long-term growth. MNDY’s negative net income and high growth phase suggest prioritization of expansion over immediate shareholder returns. Similarly, PD is investing heavily in product development, which aligns with creating long-term shareholder value. Both companies are engaged in share buyback programs, indicating a commitment to returning value to shareholders, mitigating dilution. However, the absence of dividends raises questions about the sustainability of their growth strategies amidst potential financial risks.
Strategic Positioning
monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) operate in the competitive Software – Application industry. MNDY holds a notable market share with its Work OS platform, appealing to a broad range of sectors. However, it faces increasing pressure from emerging technologies and competitors. In contrast, PD’s digital operations management platform also serves diverse industries but currently has a smaller market cap of $1.1B, indicating potential for growth amidst significant competitive pressure. Both companies must adapt to technological disruptions to maintain their positions.
Stock Comparison
In this section, I will analyze the weekly stock price movements of monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
For monday.com Ltd. (MNDY), the overall trend shows a price change of -16.97% over the past year, indicating a bearish trend. The stock has experienced notable highs at 324.31 and lows at 146.78. The acceleration status is decelerating, with a standard deviation of 41.64 suggesting significant volatility. In the recent period from September 14 to November 30, 2025, the stock further declined by -23.53%, with a trend slope of -4.77 and a standard deviation of 21.97.
On the other hand, PagerDuty, Inc. (PD) shows a more pronounced bearish trend with a -42.75% price change over the past year. The stock recorded a highest price of 26.23 and a lowest price of 12.21, also indicating deceleration in its trend. The standard deviation is lower at 2.96, reflecting less volatility compared to MNDY. In the recent period, PD’s stock price has decreased by -25.76%, with a trend slope of -0.23 and a standard deviation of 1.1.
Both stocks reflect bearish trends and show deceleration, suggesting caution for potential investors in these companies.
Analyst Opinions
Recent analyst recommendations for monday.com Ltd. (MNDY) indicate a “Buy” rating, with an overall score of 3. Analysts appreciate its solid performance in discounted cash flow and return on assets, although they express some concerns regarding its price-to-earnings metrics. In contrast, PagerDuty, Inc. (PD) holds an impressive “A-” rating, reflecting strong scores in return on equity and return on assets, which reinforces its positive outlook. The consensus for both stocks leans towards a “Buy” for the current year, particularly favoring PD for its robust financial health.
Stock Grades
In this section, I will provide an overview of the latest stock grades for monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD), based on reliable analysis from well-known grading companies.
monday.com Ltd. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | maintain | Neutral | 2025-11-11 |
| Piper Sandler | maintain | Overweight | 2025-11-11 |
| Morgan Stanley | maintain | Overweight | 2025-11-11 |
| Jefferies | maintain | Buy | 2025-11-11 |
| Citigroup | maintain | Buy | 2025-11-11 |
| Barclays | maintain | Overweight | 2025-11-11 |
| UBS | maintain | Neutral | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-11 |
| Wells Fargo | maintain | Overweight | 2025-11-11 |
| DA Davidson | maintain | Buy | 2025-11-11 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | maintain | Outperform | 2025-11-26 |
| 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 |
| JP Morgan | maintain | Underweight | 2025-05-30 |
| Truist Securities | maintain | Buy | 2025-05-30 |
| RBC Capital | maintain | Outperform | 2025-05-30 |
| TD Securities | maintain | Hold | 2025-05-21 |
Overall, the grades for both companies indicate a stable sentiment among analysts, with multiple maintain ratings in both the buy and overweight categories for MNDY, while PD shows a strong position with outperformance ratings maintained.
Target Prices
The consensus target prices from reliable analysts suggest strong potential upside for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| monday.com Ltd. | 365 | 202 | 293.78 |
| PagerDuty, Inc. | 16 | 15 | 15.5 |
For monday.com Ltd. (MNDY), the target consensus of 293.78 indicates a significant upside from the current price of 145.7. In contrast, PagerDuty, Inc. (PD) has a consensus of 15.5, suggesting limited growth potential compared to its current price of 12.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) based on the most recent financial data.
| Criterion | monday.com Ltd. (MNDY) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | High (varied applications) | Moderate (focus on digital operations) |
| Profitability | Low (net margin: 3.33%) | Low (net margin: -9.14%) |
| Innovation | High (strong software solutions) | Moderate (growing market presence) |
| Global presence | High (operates globally) | Moderate (primarily in the US and Japan) |
| Market Share | Growing in software sector | Moderate in digital operations management |
| Debt level | Low (debt-to-equity: 0.10) | High (debt-to-equity: 3.57) |
Key takeaways show that while monday.com demonstrates strengths in diversification and global presence, both companies struggle with profitability. PagerDuty has a high debt level, which poses potential risks for investors.
Risk Analysis
Below is a summary table outlining the key risks associated with monday.com Ltd. and PagerDuty, Inc.
| Metric | monday.com Ltd. | PagerDuty, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant operational risks due to competitive pressures and technology evolution in the software sector. Additionally, PagerDuty has a higher market risk, influenced by its stock volatility and economic uncertainties.
Which one to choose?
In comparing monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD), PagerDuty appears to be the stronger candidate for investors. MNDY has a market cap of approximately $11.75B and a price-to-earnings ratio (P/E) of 363, indicating potential overvaluation concerns. Conversely, PD, with a market cap of around $1.70B and a P/E of -39.87, offers a more favorable valuation amidst its lower price-to-sales ratio of 3.64. Analysts have rated PD at A- for its robust return on equity and assets, compared to MNDY’s B rating, which reflects weaker profitability metrics. Given the bearish trends observed, with MNDY down 16.97% and PD down 42.75% recently, investors should consider their risk appetite; growth-focused investors might still favor MNDY, while those seeking value may lean towards PD.
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 monday.com Ltd. and PagerDuty, Inc. to enhance your investment decisions:
