In the ever-evolving landscape of technology and industrial innovation, Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD) stand out for their unique approaches to market challenges. ROP, a leader in industrial machinery, excels in engineered solutions, while PD specializes in digital operations management, leveraging machine learning for operational efficiency. By comparing these two companies, I aim to provide insights into their strategies, market overlaps, and growth potential. Join me as we explore which of these companies might be the more intriguing addition to your investment portfolio.
Table of contents
Company Overview
Roper Technologies, Inc. Overview
Roper Technologies, Inc. is a leading player in the industrial machinery sector, offering a wide array of software and engineered products. Founded in 1981 and headquartered in Sarasota, Florida, Roper’s mission is to design and develop innovative solutions that enhance operational efficiency across various industries. The company specializes in management software, cloud-based analytics, and precision testing instruments, serving sectors such as healthcare, foodservice, and insurance. With a market capitalization of approximately $48B, Roper stands out for its diversified portfolio, which includes advanced technologies and data analytics, positioning it as a key contributor to industrial innovation.
PagerDuty, Inc. Overview
Founded in 2009 and based in San Francisco, California, PagerDuty, Inc. operates a prominent digital operations management platform. With a focus on leveraging machine learning to optimize digital signals from software systems, PagerDuty aims to enhance operational visibility and responsiveness across various sectors, including technology, retail, and financial services. The company, which has a market cap of around $1.1B, is dedicated to improving incident response times and reliability for its clients, making it an essential tool for businesses navigating the complexities of modern digital operations.
Key similarities and differences
Both Roper Technologies and PagerDuty operate in technology-driven sectors but differ significantly in their focus. Roper emphasizes industrial machinery and software solutions aimed at enhancing operational efficiency across diverse industries, while PagerDuty specializes in digital operations management, primarily addressing the needs of technology-driven businesses. Their business models reflect this divergence, with Roper leaning towards hardware and specialized software, and PagerDuty focusing on platform-based solutions and incident management.
Income Statement Comparison
The table below compares the income statements of Roper Technologies, Inc. and PagerDuty, Inc. for their most recent fiscal years, highlighting key financial metrics.
| Metric | Roper Technologies, Inc. | PagerDuty, Inc. |
|---|---|---|
| Market Cap | 48.03B | 1.10B |
| Revenue | 7.04B | 467.50M |
| EBITDA | 3.04B | -11.89M |
| EBIT | 2.23B | -32.50M |
| Net Income | 1.55B | -42.74M |
| EPS | 14.47 | -0.59 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
Roper Technologies shows a strong upward trend in both revenue and net income, with a significant increase in revenue from 6.18B in the previous year to 7.04B. The EBITDA margin remains robust, indicating effective cost management despite the increase in operating expenses. In contrast, PagerDuty continues to struggle, reporting a 9% revenue increase year-over-year, yet remains unprofitable with a negative net income and EBITDA for the most recent fiscal year. The challenges in maintaining profitability and the need for operational improvements are evident in their financials.
Financial Ratios Comparison
Below is a comparative table of the most recent financial metrics for Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD):
| Metric | ROP | PD |
|---|---|---|
| ROE | 8.2% | -32.9% |
| ROIC | 5.5% | -10.1% |
| P/E | 35.9 | -39.9 |
| P/B | 2.95 | 13.12 |
| Current Ratio | 0.40 | 1.87 |
| Quick Ratio | 0.37 | 1.87 |
| D/E | 0.41 | 3.57 |
| Debt-to-Assets | 24.5% | 50.0% |
| Interest Coverage | 7.70 | -6.46 |
| Asset Turnover | 0.22 | 0.50 |
| Fixed Asset Turnover | 47.02 | 16.61 |
| Payout Ratio | 20.8% | 0% |
| Dividend Yield | 0.58% | 0% |
Interpretation of Financial Ratios
Roper Technologies exhibits strong profitability metrics with a positive ROE of 8.2% and a manageable debt-to-equity ratio of 0.41. In contrast, PagerDuty struggles with significant losses, reflected in its negative ROE and high debt levels, indicating potential liquidity and operational concerns. Investors should approach PD cautiously due to these financial challenges, while ROP appears to be a more stable investment choice.
Dividend and Shareholder Returns
Roper Technologies (ROP) pays a dividend with a yield of approximately 0.58% and a payout ratio of around 21%. The company has demonstrated consistent dividend growth, supported by strong free cash flow. Meanwhile, PagerDuty (PD) does not pay dividends, reflecting its reinvestment strategy during its growth phase. Although it engages in share buybacks, the absence of dividends raises questions about long-term shareholder value creation. Overall, ROP’s distributions appear sustainable, while PD’s focus on growth could be beneficial if managed judiciously.
Strategic Positioning
Roper Technologies, Inc. (ROP) commands a strong market position in the Industrial – Machinery sector with a market cap of $48.03B, focusing on diverse software and engineered solutions. In contrast, PagerDuty, Inc. (PD) operates in the Software – Application industry, with a market cap of $1.10B, delivering a digital operations management platform. Both companies face competitive pressure and technological disruption in their respective fields, necessitating continual innovation to maintain and expand their market shares.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD) over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
Roper Technologies, Inc. (ROP): Over the past year, ROP has experienced a price change of -14.69%, indicating a bearish trend. The stock reached a high of 588.38 and a low of 443.75, with a standard deviation of 30.17 suggesting significant volatility. The recent trend from September 14, 2025, to November 30, 2025, shows a further decline of -12.94%. This trend is characterized by deceleration, with a trend slope of -7.36.
PagerDuty, Inc. (PD): PD has faced a more severe decline, with an overall price change of -43.71%, also reflecting a bearish trend. The stock’s highest price was 26.23, while the lowest was 12.0, with a standard deviation of 2.97 indicating less volatility than ROP. In the recent period from September 14, 2025, to November 30, 2025, PD’s price declined by -27.01%, further confirming the bearish sentiment, albeit with a trend slope of -0.24, indicating deceleration in this decline.
In summary, both stocks are on a downward trajectory, with ROP showing a moderate bearish trend and PD exhibiting a more significant downturn. As an investor, I would recommend exercising caution when considering positions in these equities.
Analyst Opinions
Recent analyst recommendations for Roper Technologies, Inc. (ROP) indicate a “B+” rating, suggesting a hold position. Analysts cite solid discounted cash flow and return metrics, but note concerns over debt levels. Conversely, PagerDuty, Inc. (PD) has received an “A-” rating, signaling a strong buy. Analysts highlight exceptional performance in return on equity and assets, coupled with low debt-to-equity ratios. The consensus for ROP is to hold, while for PD, it leans towards a buy for 2025.
Stock Grades
In this section, I present the latest stock ratings for Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD), providing insights into their performance outlook.
Roper Technologies, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | downgrade | Sector Perform | 2025-10-27 |
| Barclays | maintain | Underweight | 2025-10-27 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Raymond James | maintain | Strong Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Jefferies | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-17 |
| JP Morgan | downgrade | Underweight | 2025-10-15 |
| Barclays | maintain | Underweight | 2025-10-01 |
| Truist Securities | maintain | Buy | 2025-07-22 |
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, ROP has seen a mixed trend with some downgrades reflecting caution among analysts, while PD maintains a more consistent outlook with several firms reiterating their positive ratings. This indicates varying levels of confidence in these companies, which investors should consider when making their decisions.
Target Prices
The consensus target prices for Roper Technologies, Inc. and PagerDuty, Inc. are as follows:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Roper Technologies, Inc. | 650 | 506 | 574.2 |
| PagerDuty, Inc. | 19 | 15 | 16.75 |
Roper Technologies is currently trading at 446.22, suggesting significant upside potential according to analyst expectations. PagerDuty, on the other hand, is priced at 12, indicating a moderate growth outlook.
Strengths and Weaknesses
Below is a comparative analysis of the strengths and weaknesses of Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD).
| Criterion | Roper Technologies (ROP) | PagerDuty (PD) |
|---|---|---|
| Diversification | High – diverse portfolio across industries | Moderate – focused on digital operations management |
| Profitability | Strong – net profit margin of 22.0% | Negative – net profit margin of -9.1% |
| Innovation | High – significant investment in R&D | Moderate – evolving product offerings |
| Global presence | Strong – operates internationally | Moderate – primarily US and select international markets |
| Market Share | Strong – leading position in industrial software | Growing – emerging presence in digital operations |
| Debt level | Moderate – debt-to-equity ratio of 0.41 | High – debt-to-equity ratio of 3.57 |
Key takeaways reveal that Roper Technologies demonstrates strengths in profitability, diversification, and global presence, making it a solid investment choice. Conversely, PagerDuty’s high debt levels and negative profitability emphasize the risks involved.
Risk Analysis
The following table summarizes the key risks associated with Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD) based on their most recent fiscal year data.
| Metric | Roper Technologies, Inc. (ROP) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | High |
In synthesizing the risks, I observe that PagerDuty faces higher market and operational risks compared to Roper Technologies. The volatility in its stock price, with a beta of 0.665, indicates a more stable market presence, but ongoing operational challenges could impact its profitability.
Which one to choose?
When comparing Roper Technologies, Inc. (ROP) and PagerDuty, Inc. (PD), ROP demonstrates stronger fundamentals, with a gross profit margin of 69.3% and a net profit margin of 22.0%, while PD shows a gross profit margin of 82.9% but operates at a net loss. ROP’s debt-to-equity ratio is 0.41, indicating manageable leverage, whereas PD’s is significantly higher at 3.57, presenting greater risk. Analysts rate ROP with a B+, while PD has a higher A- rating, reflecting growth potential but also greater uncertainty. ROP’s stock trend is bearish with a recent price change of -14.69%, whereas PD has seen a steeper decline of -43.71%.
Investors focused on stability and solid fundamentals may prefer ROP, while those seeking high-risk, high-reward opportunities could lean towards PD. However, potential investors should be cautious due to competition and market volatility affecting both companies.
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 Roper Technologies, Inc. and PagerDuty, Inc. to enhance your investment decisions:
