In the fast-evolving landscape of technology, UiPath Inc. and PagerDuty, Inc. emerge as key players in the software sector, each offering innovative solutions that address critical operational challenges. While UiPath specializes in robotic process automation (RPA), PagerDuty focuses on digital operations management, creating a fascinating overlap in their markets. This analysis will help you determine which company presents a more compelling investment opportunity. Are you ready to explore the potential of these two tech giants?
Table of contents
Company Overview
UiPath Inc. Overview
UiPath Inc. is a leader in robotic process automation (RPA), offering a comprehensive automation platform designed to enhance operational efficiencies through digital transformation. Founded in 2005 and headquartered in New York, UiPath enables organizations to automate repetitive tasks using a blend of artificial intelligence and intuitive software solutions. Their platform supports both attended and unattended automation, catering to various industries including banking, healthcare, and government. With a market cap of $7.27B, UiPath emphasizes user-friendly low-code interfaces, allowing businesses to implement automation with minimal technical expertise. As of now, the company has 3,868 employees and continues to expand its global footprint.
PagerDuty, Inc. Overview
Founded in 2009 and based in San Francisco, PagerDuty, Inc. specializes in digital operations management, providing a platform that integrates and analyzes data signals from various software systems. With a market cap of $1.12B, PagerDuty employs machine learning to predict and resolve operational issues in real-time, serving diverse sectors including technology, telecommunications, and retail. The company focuses on enhancing incident response and business continuity, positioning itself as an essential tool for organizations seeking to manage their digital infrastructure effectively. PagerDuty has a workforce of 1,242 employees and remains committed to evolving its capabilities to meet the demands of a rapidly changing digital landscape.
Key similarities in their business models include a focus on leveraging technology to enhance operational efficiencies and support for various industries. However, UiPath is primarily centered on automation processes, while PagerDuty emphasizes digital operations management and incident response solutions.
Income Statement Comparison
The following table outlines a comparison of key income statement metrics for UiPath Inc. (PATH) and PagerDuty, Inc. (PD) for the fiscal year 2025.
| Metric | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| Revenue | 1.43B | 467M |
| EBITDA | -145M | -11.9M |
| EBIT | -162.6M | -32.5M |
| Net Income | -73.7M | -42.7M |
| EPS | -0.13 | -0.59 |
Interpretation of Income Statement
In 2025, both UiPath and PagerDuty reported negative net incomes, reflecting ongoing challenges in profitability. UiPath’s revenue increased to 1.43B from 1.31B in 2024, demonstrating a consistent upward trend, while PagerDuty’s revenue also increased to 467M, up from 431M in 2024. Despite the revenue growth, both companies faced significant losses, indicating that operational costs continue to outpace revenue. Notably, UiPath’s EBITDA improved marginally compared to the previous year, suggesting efforts toward cost control, while PagerDuty’s EBITDA remains deeply negative, indicating persistent operational inefficiencies. Thus, while growth is evident, the pathway to profitability remains fraught with challenges for both firms.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial ratios for UiPath Inc. (PATH) and PagerDuty, Inc. (PD).
| Metric | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| ROE | -4.00% | -32.92% |
| ROIC | -7.41% | -10.07% |
| P/E | N/A | N/A |
| P/B | 4.31 | 13.12 |
| Current Ratio | 2.93 | 1.87 |
| Quick Ratio | 2.93 | 1.87 |
| D/E | 0.04 | 3.57 |
| Debt-to-Assets | 2.72% | 50.00% |
| Interest Coverage | N/A | N/A |
| Asset Turnover | 0.50 | 0.50 |
| Fixed Asset Turnover | 16.41 | 16.61 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
Both companies exhibit negative return ratios (ROE and ROIC), indicating challenges in generating profits relative to equity and invested capital. UiPath demonstrates a stronger liquidity position with higher current and quick ratios, while PagerDuty carries significant leverage, as shown by its high debt-to-equity ratio. The lack of dividends and payout ratios reflects both companies’ focus on reinvesting earnings to address profitability issues. Caution is advised when considering investments in these firms due to their current operational challenges.
Dividend and Shareholder Returns
Both UiPath Inc. (PATH) and PagerDuty, Inc. (PD) do not pay dividends as they are in high-growth phases, focusing on reinvestment strategies. Instead of dividends, they prioritize research, development, and acquisitions to drive long-term value. Notably, both companies have engaged in share buybacks, which can enhance shareholder value by reducing share dilution. However, the absence of dividends raises concerns about short-term profitability and sustainable cash flow management, warranting careful monitoring of their financial health and growth trajectories.
Strategic Positioning
In the competitive landscape of software solutions, UiPath Inc. (PATH) holds a significant market share in robotic process automation (RPA), leveraging its comprehensive platform in diverse sectors like banking and healthcare. Meanwhile, PagerDuty, Inc. (PD), focusing on digital operations management, faces strong competitive pressure, particularly from emerging technologies and established players. Both companies must navigate technological disruptions while continuously innovating to maintain their market positions and address the evolving needs of their clientele.
Stock Comparison
In analyzing the stock price movements of UiPath Inc. (PATH) and PagerDuty, Inc. (PD) over the past year, we observe significant price declines, with key fluctuations that inform current trading dynamics.
Trend Analysis
For UiPath Inc. (PATH), the overall percentage change over the past year is -39.67%, indicating a bearish trend. The stock has experienced notable volatility with a standard deviation of 4.08, highlighting significant price fluctuations. The highest recorded price during this period was 26.35, while the lowest was 10.04. The trend shows acceleration, suggesting that the downward momentum may continue.
In the recent analysis period from September 14, 2025, to November 30, 2025, PATH saw a price change of +19.65%. This indicates a shift towards a more positive short-term trend, but the overall bearish sentiment remains dominant.
For PagerDuty, Inc. (PD), the overall percentage change over the same timeframe is -41.82%, which also reflects a bearish trend. The stock has a standard deviation of 2.96, indicating moderate volatility. The highest price reached was 26.23, with a low of 12.4. The trend shows deceleration, suggesting a potential easing of the downward pressure.
In the recent trend from September 14, 2025, to November 30, 2025, PD experienced a price change of -24.54%, reinforcing the bearish sentiment and indicating a continued decline.
Both companies exhibit challenges in their respective stock performances, warranting caution for potential investors.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for the two companies. UiPath Inc. (PATH) received a rating of B- from analysts, reflecting a cautious stance primarily due to its lower price-to-earnings score. Conversely, PagerDuty, Inc. (PD) garnered an A- rating, driven by strong return metrics and solid cash flow projections. The consensus for PATH remains a hold, while PD is generally viewed as a buy for 2025, suggesting a more favorable investment opportunity.
Stock Grades
Recent stock ratings provide valuable insights into the market outlook for selected companies. Below are the grades for UiPath Inc. and PagerDuty, Inc.
UiPath Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | upgrade | Neutral | 2025-10-23 |
| BMO Capital | maintain | Market Perform | 2025-10-02 |
| Canaccord Genuity | maintain | Buy | 2025-09-08 |
| Truist Securities | maintain | Hold | 2025-09-05 |
| BMO Capital | maintain | Market Perform | 2025-09-05 |
| Needham | maintain | Hold | 2025-09-05 |
| Morgan Stanley | maintain | Equal Weight | 2025-06-02 |
| Canaccord Genuity | maintain | Buy | 2025-06-02 |
| Evercore ISI Group | maintain | In Line | 2025-05-30 |
| Scotiabank | maintain | Sector Perform | 2025-05-30 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| 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 |
| Truist Securities | maintain | Buy | 2025-05-30 |
| JP Morgan | maintain | Underweight | 2025-05-30 |
| RBC Capital | maintain | Outperform | 2025-05-30 |
| TD Securities | maintain | Hold | 2025-05-21 |
| Morgan Stanley | maintain | Equal Weight | 2025-04-16 |
Overall, UiPath has seen a recent upgrade to a Neutral rating, while PagerDuty maintains a strong Buy sentiment from several institutions, highlighting positive investor confidence.
Target Prices
The consensus target prices from reliable analysts for the selected companies are as follows:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| UiPath Inc. | 17 | 13 | 15.33 |
| PagerDuty, Inc. | 16 | 15 | 15.5 |
For UiPath Inc., the consensus target price of 15.33 suggests an upside potential from the current stock price of approximately 13.70. Similarly, PagerDuty, Inc.’s consensus target of 15.5 indicates a possible recovery from its current price of about 12.17. Both companies are positioned for potential growth according to analyst expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of UiPath Inc. (PATH) and PagerDuty, Inc. (PD) based on the latest available data:
| Criterion | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Negative margins | Negative margins |
| Innovation | Strong | Moderate |
| Global presence | Limited | Strong |
| Market Share | Growing | Stable |
| Debt level | Low | High |
Key takeaways indicate that while both companies face profitability challenges, UiPath has a stronger innovation appeal and lower debt levels. In contrast, PagerDuty excels in diversification and global presence, making it a potentially more balanced investment.
Risk Analysis
The following table summarizes the key risks associated with UiPath Inc. and PagerDuty, Inc.
| Metric | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant operational risks, primarily due to their reliance on technology and software development. Recent reports indicate that UiPath struggles with profitability, while PagerDuty’s financial leverage poses a risk, with a debt-to-equity ratio of 3.57.
Which one to choose?
Comparing UiPath Inc. (PATH) and PagerDuty, Inc. (PD), both companies exhibit challenges in terms of profitability. UiPath has a gross profit margin of 83% but struggles with negative net income and high debt levels, reflected in a B- rating. Conversely, PagerDuty boasts a strong A- rating, with better margins and lower debt metrics, although it also reports losses. Stock trends for both companies show bearish patterns, with PATH declining by 39.67% and PD down 41.82% over the past year. Analysts view PagerDuty more favorably, particularly for its return on equity.
Investors focused on stability and potentially faster recovery may prefer PagerDuty, while those willing to take on more risk for potential long-term growth might consider UiPath.
Specific risks for both firms include market dependence and competitive pressures within their respective industries.
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 UiPath Inc. and PagerDuty, Inc. to enhance your investment decisions:
