In the rapidly evolving landscape of technology, monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD) stand out as prominent players in the software application sector. Both companies are innovating within overlapping markets, focusing on enhancing work management and operational efficiency for organizations. While monday.com offers a cloud-based work operating system, PagerDuty excels in digital operations management. As an investor, I invite you to explore which of these companies may provide the most promising opportunity for your portfolio.
Table of contents
Company Overview
monday.com Ltd. Overview
monday.com Ltd. is a leading player in the software application industry, specializing in work operating systems. Founded in 2012 and headquartered in Tel Aviv-Yafo, Israel, the company provides a cloud-based platform that allows organizations to customize their work management processes using modular building blocks. Its solutions cater to diverse sectors including marketing, CRM, and project management, making it a versatile tool for businesses of all sizes. With a market capitalization of approximately $7.36B, monday.com has positioned itself as a dynamic provider in the SaaS landscape, continually evolving to meet the needs of its users.
PagerDuty, Inc. Overview
PagerDuty, Inc., founded in 2009 and based in San Francisco, California, operates a digital operations management platform that integrates machine learning to enhance incident response across various industries. With a market cap of around $1.10B, PagerDuty serves a broad spectrum of sectors, from technology to financial services, ensuring that organizations can efficiently manage alerts and operational issues. The company is recognized for its robust capabilities in correlating and processing data signals from multiple software systems, making it an essential tool for businesses aiming to maintain high operational standards.
Key similarities and differences
Both monday.com and PagerDuty operate in the software application industry, focusing on enhancing organizational efficiency. However, while monday.com emphasizes customizable work management systems, PagerDuty concentrates on incident management and operational reliability through machine learning. This distinction highlights their unique value propositions within the broader tech ecosystem.
Income Statement Comparison
Below is a comparison of the latest income statements from monday.com Ltd. and PagerDuty, Inc. This analysis will help investors understand the financial performance of these two companies.
| Metric | monday.com Ltd. | PagerDuty, Inc. |
|---|---|---|
| Market Cap | 7.36B | 1.10B |
| Revenue | 972M | 467M |
| EBITDA | 58M | -11.89M |
| EBIT | 39.76M | -32.50M |
| Net Income | 32.37M | -54.46M |
| EPS | 0.65 | -0.59 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, monday.com demonstrated solid growth in revenue, rising from 730M to 972M, while PagerDuty’s revenue increased from 431M to 467M, indicating slower growth. Both companies reported negative EBIT margins, but monday.com achieved a positive net income of 32.37M, contrasting PagerDuty’s loss of 54.46M. The improvement in monday.com’s margins suggests better cost management and operational efficiency, while PagerDuty continues to face challenges in profitability, which raises caution for potential investors.
Financial Ratios Comparison
In this section, I present a comparative analysis of the financial metrics for monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD), focusing on key revenue and ratios.
| Metric | monday.com (MNDY) | PagerDuty (PD) |
|---|---|---|
| ROE | 3.14% | -32.92% |
| ROIC | -1.73% | -10.07% |
| P/E | 363.00 | -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 ratios indicate that while monday.com has a solid current and quick ratio, suggesting good short-term liquidity, its P/E and ROE figures signal high valuation with negative earnings. PagerDuty, on the other hand, demonstrates significant leverage with a high debt-to-equity ratio, raising concerns about financial stability. Both companies show weaknesses in profitability, highlighted by negative ROIC and interest coverage ratios. Investors should approach these stocks with caution given their financial challenges.
Dividend and Shareholder Returns
Neither monday.com Ltd. (MNDY) nor PagerDuty, Inc. (PD) pays dividends, reflecting their focus on reinvesting earnings for growth rather than returning capital to shareholders. Both companies are in phases of negative net income, prioritizing R&D and expansion. While both engage in share buybacks to enhance shareholder value, the lack of dividends suggests a strategy aimed at long-term growth. This approach, if managed prudently, can align well with sustainable value creation for shareholders.
Strategic Positioning
In the competitive landscape of the software application industry, monday.com Ltd. (MNDY) holds a significant market share with its innovative Work OS platform, catering to various sectors globally. Its unique modular approach positions it well against competitors. Conversely, PagerDuty, Inc. (PD) excels in digital operations management, utilizing machine learning to enhance service reliability. Both companies face growing competitive pressure, especially from emerging technologies that may disrupt traditional operational methods. I remain cautious about potential market fluctuations impacting their performances.
Stock Comparison
In analyzing the weekly stock price movements for monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD), we observe significant price fluctuations and trading dynamics over the past year.
Trend Analysis
For monday.com Ltd. (MNDY), the price has decreased by -18.63% over the past year, indicating a bearish trend. The stock reached a high of 324.31 and a low of 143.86 during this period. The trend shows deceleration, with a recent price decline of -25.05% from September 14, 2025, to November 30, 2025. The standard deviation of 22.4 suggests notable volatility.
For PagerDuty, Inc. (PD), the stock has declined by -43.71% over the past year, also reflecting a bearish trend. The highest price noted was 26.23, while the lowest was 12.00. The trend is again characterized by deceleration, with a recent price drop of -27.01% during the same period as MNDY. The standard deviation of 1.15 indicates lower volatility compared to MNDY.
Both stocks exhibit seller dominance in recent trading behavior, with buyer percentages of 34.13% for MNDY and 18.11% for PD. The overall volume trends for both companies are increasing, yet the market sentiment remains cautious given the bearish trends.
Analyst Opinions
Recent analyst recommendations for monday.com Ltd. (MNDY) indicate a cautious stance, with a B- rating. The primary concerns are its lower scores in price-to-earnings and price-to-book ratios, suggesting potential valuation issues. In contrast, PagerDuty, Inc. (PD) has received an A- rating, supported by strong scores in discounted cash flow and return metrics, making it a more favorable investment. The consensus for MNDY is a hold, while PD is viewed as a buy for the current year.
Stock Grades
In the current market climate, it’s essential to evaluate stock ratings to make informed investment decisions. Below, I present the grades for monday.com Ltd. and PagerDuty, Inc.
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 |
|---|---|---|---|
| TD Cowen | maintain | Buy | 2025-11-26 |
| RBC Capital | maintain | Outperform | 2025-11-26 |
| Craig-Hallum | downgrade | Hold | 2025-11-26 |
| Morgan Stanley | maintain | Equal Weight | 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 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| JP Morgan | maintain | Underweight | 2025-05-30 |
Overall, monday.com Ltd. maintains a solid grade positioning with several “Overweight” and “Buy” ratings, indicating confidence among analysts. Conversely, PagerDuty, Inc. shows a mix of ratings, with one downgrade to “Hold,” suggesting a need for caution despite some “Buy” recommendations.
Target Prices
The consensus target prices for the following companies reflect optimistic growth potential according to analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| monday.com Ltd. | 365 | 202 | 293.78 |
| PagerDuty, Inc. | 19 | 15 | 16.75 |
For monday.com Ltd. (MNDY), the consensus price of 293.78 suggests a significant upside potential compared to its current price of 143.86. Similarly, PagerDuty, Inc. (PD) has a target consensus of 16.75, indicating room for growth from its current price of 12.
Strengths and Weaknesses
Below is a comparative table highlighting the strengths and weaknesses of monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD).
| Criterion | monday.com Ltd. (MNDY) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Strong, with multiple software solutions across various sectors | Moderate, focused on digital operations management |
| Profitability | Negative margins recently, but improving gross profit margin (89.3%) | Negative margins, with a gross profit margin of 82.9% |
| Innovation | High focus on product development and feature enhancements | Moderate innovation in operations management solutions |
| Global presence | Operates in multiple regions including US, Europe, and Israel | Primarily US and Japan focused |
| Market Share | Growing market presence in project management | Established presence in digital operations |
| Debt level | Low debt to equity ratio (0.102) | High debt to equity ratio (3.571) |
Key takeaways: Both companies exhibit strengths and weaknesses. MNDY shows a strong innovation and diversification profile, while PD struggles with high debt levels but maintains a solid market presence in its niche. Assessing these factors is crucial for potential investment decisions.
Risk Analysis
The table below summarizes key risks associated with monday.com Ltd. and PagerDuty, Inc. based on the most recent data.
| Metric | monday.com Ltd. (MNDY) | PagerDuty, Inc. (PD) |
|---|---|---|
| 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, particularly monday.com, which is still evolving its business model. PagerDuty’s high market risk reflects its reliance on broader tech market performance. Recent fluctuations in tech stocks may further amplify these risks.
Which one to choose?
When comparing monday.com Ltd. (MNDY) and PagerDuty, Inc. (PD), both companies exhibit potential for growth, yet they also face significant challenges. MNDY has a market cap of 11.75B and a gross profit margin of 89.3%, but its high P/E ratio of 363 indicates overvaluation concerns. In contrast, PD, with a market cap of 1.70B, demonstrates a stronger analyst rating of A- compared to MNDY’s B-, suggesting better overall performance and investor confidence.
Despite MNDY’s higher growth potential, its bearish stock trend (-18.63%) contrasts with PD’s sharper decline (-43.71%), reflecting recent market struggles. Investors focused on growth may prefer MNDY for its revenue trajectory, while those prioritizing stability might favor PD due to its stronger financial ratios and lower valuation metrics.
Specific risks for both companies include competition and market dependence, which can impact their profitability and stock performance.
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:
