In today’s fast-evolving technology sector, choosing the right software application company can significantly impact an investor’s portfolio. PagerDuty, Inc. and Perfect Corp. both innovate within software but target different niches—digital operations management versus AI-powered beauty and fashion tech. Their distinct strategies and market approaches make them worthy of comparison. Join me as we explore which company presents the most compelling opportunity for your investment.
Table of contents
Companies Overview
I will begin the comparison between PagerDuty and Perfect Corp. by providing an overview of these two companies and their main differences.
PagerDuty Overview
PagerDuty, Inc. operates a digital operations management platform primarily in the US, Japan, and internationally. Founded in 2009 and headquartered in San Francisco, it leverages machine learning to process and predict opportunities and issues from digital signals across various industries, including technology, telecommunications, retail, travel, media, and financial services. PagerDuty focuses on enabling real-time operational insights for software-enabled systems.
Perfect Corp. Overview
Perfect Corp. provides SaaS solutions combining artificial intelligence and augmented reality for beauty and fashion tech, offering virtual try-on and AI-powered analysis tools. Founded in 2015 and based in New Taipei City, Taiwan, it serves consumers and businesses with apps such as YouCam makeup and YouCam nails. Its technology enhances user engagement through virtual experiences in cosmetics, accessories, and style.
Key similarities and differences
Both PagerDuty and Perfect Corp. operate in the software application industry within the technology sector, utilizing AI to deliver innovative solutions. However, PagerDuty focuses on digital operations management across multiple industries, while Perfect Corp. specializes in AI and AR applications for beauty and fashion. PagerDuty’s market cap is significantly larger at approximately 1B USD compared to Perfect Corp.’s 179M USD, and they differ geographically with PagerDuty based in the US and Perfect Corp. in Taiwan.
Income Statement Comparison
Below is a side-by-side comparison of key income statement metrics for PagerDuty, Inc. and Perfect Corp. for their most recent fiscal years.
| Metric | PagerDuty, Inc. (PD) | Perfect Corp. (PERF) |
|---|---|---|
| Market Cap | 1.03B | 179M |
| Revenue | 467.5M | 60.2M |
| EBITDA | -11.9M | -2.0M |
| EBIT | -32.5M | -2.8M |
| Net Income | -42.7M | 5.0M |
| EPS | -0.59 | 0.05 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
PagerDuty, Inc.
PagerDuty’s revenue grew steadily from $214M in 2021 to $467M in 2025, nearly doubling over five years. Despite rising gross margins to 82.96% in 2025, the company remained unprofitable with a net margin of -9.14%, though improving from prior years. The latest year showed favorable growth in revenue (+8.54%) and net margin (+51.84%), indicating operational improvements despite ongoing losses.
Perfect Corp.
Perfect Corp. experienced consistent revenue growth from $30M in 2020 to $60M in 2024, doubling in four years. Its gross margin remained stable near 78%, while the net margin turned positive to 8.34% in 2024. However, EBIT margin stayed negative at -4.72%, reflecting continued operating losses. The most recent year saw solid revenue growth (+12.52%) but declines in EBIT (-151.28%) and net margin (-17.61%).
Which one has the stronger fundamentals?
Both companies exhibit favorable revenue growth and gross margins, but PagerDuty shows stronger margin improvement and operating results growth. Perfect Corp. benefits from positive net margins yet struggles with negative EBIT performance and recent margin contraction. Overall, PagerDuty’s income statement reveals more consistent operational progress despite ongoing net losses.
Financial Ratios Comparison
Below is a comparison of key financial ratios for PagerDuty, Inc. (PD) and Perfect Corp. (PERF) based on their most recent fiscal year data.
| Ratios | PagerDuty, Inc. (2025) | Perfect Corp. (2024) |
|---|---|---|
| ROE | -32.9% | 3.42% |
| ROIC | -9.66% | -2.10% |
| P/E | -39.87 | 56.6 |
| P/B | 13.12 | 1.93 |
| Current Ratio | 1.87 | 5.52 |
| Quick Ratio | 1.87 | 5.52 |
| D/E (Debt-to-Equity) | 3.57 | 0.0035 |
| Debt-to-Assets | 50.0% | 0.28% |
| Interest Coverage | -6.46 | -449 |
| Asset Turnover | 0.50 | 0.33 |
| Fixed Asset Turnover | 16.61 | 57.94 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
PagerDuty, Inc.
PagerDuty shows several unfavorable ratios, including negative net margin (-9.14%), return on equity (-32.92%), and high debt-to-assets (50%). However, it has favorable liquidity with a current ratio of 1.87 and a low beta of 0.627. The company does not pay dividends, likely reflecting its ongoing investment in growth and R&D, consistent with its negative earnings and cash flow profile.
Perfect Corp.
Perfect Corp. presents a mixed ratio profile with a positive net margin of 8.34% but unfavorable return on equity (3.42%) and a high price-to-earnings ratio of 56.6. It benefits from a strong quick ratio of 5.52 and zero debt, yet interest coverage is highly negative. The absence of dividends aligns with its reinvestment strategy and focus on innovation in a competitive market.
Which one has the best ratios?
Neither company displays a definitively favorable ratio set; PagerDuty faces significant profitability and leverage challenges, while Perfect Corp. struggles with valuation and operational efficiency despite better liquidity and no debt. Perfect Corp.’s ratios are slightly less unfavorable overall, though both require cautious analysis given their financial profiles.
Strategic Positioning
This section compares the strategic positioning of PagerDuty and Perfect Corp. including Market position, Key segments, and disruption:
PagerDuty, Inc.
- Operates a digital operations management platform facing competition in software application industry.
- Serves multiple industries including software, telecom, retail, travel, media, and financial services.
- Exposure to disruption through machine learning integration for predictive digital operations management.
Perfect Corp.
- Provides AI and AR SaaS solutions focused on beauty and fashion tech, a niche segment with specialized demand.
- Focused on AI-powered virtual try-on and beauty/fashion apps, driving business through innovative tech solutions.
- High exposure to technological disruption with AI and AR innovations shaping virtual beauty and fashion experiences.
PagerDuty vs Perfect Corp. Positioning
PagerDuty adopts a diversified approach across many industries with a broad digital operations platform, while Perfect Corp. concentrates on niche AI and AR solutions in beauty and fashion. PagerDuty benefits from industry breadth, whereas Perfect leverages specialized technology focus.
Which has the best competitive advantage?
Both companies are currently shedding value with slightly unfavorable moats, though both show growing profitability trends. Neither demonstrates a strong economic moat based on ROIC compared to WACC in the provided data.
Stock Comparison
The stock price chart highlights significant declines for both PagerDuty, Inc. (PD) and Perfect Corp. (PERF) over the past 12 months, with notable bearish trends and decelerating momentum in their trading dynamics.
Trend Analysis
PagerDuty, Inc. (PD) exhibited a bearish trend over the past year with a -51.76% price change, showing deceleration and notable volatility with a standard deviation of 2.92. The stock peaked at 24.66 and bottomed at 11.22.
Perfect Corp. (PERF) also followed a bearish trend, declining by -28.98% with deceleration and low volatility, evidenced by a 0.27 standard deviation. The highest and lowest prices were 2.7 and 1.61, respectively.
Comparing the two, PagerDuty’s stock delivered the lowest market performance with a sharper decline than Perfect Corp., despite both showing bearish trends over the past year.
Target Prices
Analysts present a clear target price consensus for both PagerDuty, Inc. and Perfect Corp.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| PagerDuty, Inc. | 19 | 15 | 16.2 |
| Perfect Corp. | 7 | 7 | 7 |
For PagerDuty, the consensus target price of 16.2 USD suggests a potential upside from the current price of 11.22 USD. Perfect Corp.’s target price of 7 USD is significantly above its current price of 1.74 USD, indicating strong growth expectations from analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for PagerDuty, Inc. and Perfect Corp.:
Rating Comparison
PD Rating
- Rating: A-; status very favorable with a strong overall score of 4, considered favorable.
- Discounted Cash Flow Score: 5, indicating a very favorable valuation based on future cash flows.
- ROE Score: 5, showing very efficient profit generation from shareholders’ equity.
- ROA Score: 5, indicating very effective use of assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable due to higher financial risk from debt.
- Overall Score: 4, reflecting a favorable general financial standing.
PERF Rating
- Rating: A-; status very favorable with an overall score of 4, also favorable.
- Discounted Cash Flow Score: 5, also very favorable for valuation.
- ROE Score: 2, moderate efficiency in profit generation.
- ROA Score: 3, moderate effectiveness in asset utilization.
- Debt To Equity Score: 4, favorable with lower financial risk.
- Overall Score: 4, also a favorable general financial standing.
Which one is the best rated?
Both companies share the same overall rating of A- and an overall score of 4, rated favorable. PD excels in ROE and ROA but has a weak debt-to-equity score, while PERF shows moderate returns but stronger financial stability.
Scores Comparison
The comparison of PagerDuty and Perfect Corp. scores is as follows:
PD Scores
- Altman Z-Score: 1.26, indicating financial distress zone
- Piotroski Score: 7, classified as strong financial health
PERF Scores
- Altman Z-Score: 1.31, indicating financial distress zone
- Piotroski Score: 6, classified as average financial health
Which company has the best scores?
PagerDuty has a slightly lower Altman Z-Score but a stronger Piotroski Score than Perfect Corp. This suggests PagerDuty shows better financial strength based on these scores.
Grades Comparison
The following is a comparison of recent grades assigned to PagerDuty, Inc. and Perfect Corp.:
PagerDuty, Inc. Grades
This table presents recent analyst grades from reputable 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 |
PagerDuty’s grades show a mix of Buy, Outperform, and Hold ratings, reflecting a cautious but generally positive analyst sentiment.
Perfect Corp. Grades
This table presents recent analyst grades from reputable financial institutions for Perfect Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2024-02-29 |
| Goldman Sachs | Maintain | Neutral | 2023-10-26 |
| Piper Sandler | Maintain | Neutral | 2023-10-25 |
| Piper Sandler | Maintain | Neutral | 2023-07-26 |
| Piper Sandler | Maintain | Neutral | 2023-07-25 |
| Piper Sandler | Maintain | Neutral | 2023-04-27 |
| Oppenheimer | Downgrade | Perform | 2023-04-20 |
| Oppenheimer | Downgrade | Perform | 2023-04-19 |
| Oppenheimer | Downgrade | Perform | 2023-04-18 |
| Piper Sandler | Maintain | Neutral | 2023-03-08 |
Perfect Corp.’s grades are consistently Neutral, with past downgrades from Outperform to Perform, indicating a more cautious analyst view.
Which company has the best grades?
PagerDuty, Inc. has received a broader range of positive grades, including multiple Buy and Outperform ratings, while Perfect Corp.’s grades have remained predominantly Neutral. This difference may influence investors’ perceptions of growth potential and risk for each company.
Strengths and Weaknesses
The table below summarizes the key strengths and weaknesses of PagerDuty, Inc. (PD) and Perfect Corp. (PERF) based on their recent financial performance, innovation capacity, market position, and operational metrics.
| Criterion | PagerDuty, Inc. (PD) | Perfect Corp. (PERF) |
|---|---|---|
| Diversification | Moderate; focused on incident management solutions | Moderate; specializes in AI-driven beauty tech |
| Profitability | Weak; negative net margin (-9.14%) and ROIC (-9.66%) | Weak; positive net margin (8.34%) but negative ROIC (-2.1%) |
| Innovation | Growing ROIC trend signals improving operational efficiency | Strong innovation with rapidly growing ROIC (+45.8%) |
| Global presence | Established global footprint but high debt (D/E 3.57) | Smaller global footprint; low debt and strong liquidity |
| Market Share | Moderate; competitive SaaS market with high PB ratio (13.12) | Niche market leader with reasonable PB (1.93) |
Key takeaways: Both companies are currently shedding value but show improving profitability trends. PagerDuty faces challenges with high leverage and negative profitability, while Perfect Corp. benefits from strong innovation and low debt but must improve operational efficiency. Investors should weigh growth potential against current financial risks.
Risk Analysis
Below is a comparative table highlighting key risk factors for PagerDuty, Inc. (PD) and Perfect Corp. (PERF) as of the most recent fiscal years:
| Metric | PagerDuty, Inc. (PD) | Perfect Corp. (PERF) |
|---|---|---|
| Market Risk | Beta 0.627 (moderate volatility) | Beta 0.454 (lower volatility) |
| Debt level | High debt-to-equity 3.57; debt to assets 50% (high leverage) | Very low debt; debt-to-assets 0.28% (minimal leverage) |
| Regulatory Risk | Moderate, US-based tech company with typical software industry risks | Moderate, Taiwan-based with international exposure |
| Operational Risk | Negative net margin (-9.14%), unfavorable ROE (-32.92%) | Slightly positive net margin (8.34%), low but positive ROE (3.42%) |
| Environmental Risk | Typical tech industry exposure; no major environmental liabilities | Typical tech exposure; no significant environmental concerns reported |
| Geopolitical Risk | US-based, stable environment but global market exposure | Based in Taiwan, potentially higher geopolitical risk due to regional tensions |
Synthesis: PagerDuty faces significant financial risk due to high leverage and negative profitability metrics, increasing its vulnerability despite a moderate market beta. Perfect Corp. shows lower financial risk with minimal debt and positive margins but carries geopolitical risk from its Taiwan base. Both companies need careful monitoring, but PagerDuty’s financial distress indicators suggest higher investment risk at this time.
Which Stock to Choose?
PagerDuty, Inc. (PD) shows a favorable income evolution with consistent revenue and net income growth, an 8.54% revenue increase last year, but it faces unfavorable profitability ratios including a -32.92% ROE and high debt levels, reflected in a 3.57 debt-to-equity ratio and a slightly unfavorable global financial ratios evaluation. Its rating is very favorable (A-) despite a weak debt profile, and its economic moat is slightly unfavorable due to negative ROIC versus WACC, though ROIC is improving.
Perfect Corp. (PERF) demonstrates favorable income growth with a 12.52% revenue increase last year and an 8.34% positive net margin, yet it has mixed financial ratios with moderate ROE and ROIC scores and very low debt, reflected in a 0.0 debt-to-equity ratio; its global ratios evaluation is slightly unfavorable. The company holds a very favorable rating (A-) with a stronger balance sheet and a slightly unfavorable moat rating, indicating value destruction but improving profitability.
Considering ratings and income statement evaluations, PagerDuty could appeal to investors prioritizing growth potential despite financial challenges, while Perfect Corp. might attract those valuing financial stability and improving profitability with lower leverage. Both stocks exhibit bearish price trends, suggesting caution aligned with individual risk tolerance and investment strategy.
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 Perfect Corp. to enhance your investment decisions:
