In the fast-evolving tech landscape, UiPath Inc. and PagerDuty, Inc. stand out as key players, each revolutionizing different facets of digital operations. UiPath specializes in robotic process automation, streamlining workflows across various sectors, while PagerDuty focuses on digital operations management, ensuring seamless incident response and service reliability. Both companies operate in the software industry, showcasing innovative strategies to tackle modern business challenges. Join me as we explore which of these two dynamic companies presents the most intriguing investment opportunity.
Table of contents
Company Overview
UiPath Inc. Overview
UiPath Inc. is a leader in robotic process automation (RPA), providing businesses with an end-to-end automation platform designed to enhance operational efficiency. Founded in 2005 and headquartered in New York, the company combines artificial intelligence with a user-friendly interface, enabling organizations to automate repetitive tasks without requiring extensive coding knowledge. UiPath serves various sectors, including healthcare, finance, and government, positioning itself as a critical partner in digital transformation efforts. As of now, UiPath’s market capitalization stands at approximately $10B, reflecting its strong foothold in the automation landscape.
PagerDuty, Inc. Overview
PagerDuty, Inc., established in 2009 and based in San Francisco, specializes in digital operations management. Its platform aggregates data signals from diverse software systems, utilizing machine learning to identify and address operational challenges proactively. Targeting industries such as telecommunications, retail, and technology, PagerDuty aims to streamline incident response and enhance service reliability. With a market capitalization of around $1.1B, the company is recognized for its innovative approach to operational efficiency and incident management.
Key similarities and differences
Both UiPath and PagerDuty operate within the technology sector but focus on distinct areas of automation and operations management. While UiPath emphasizes robotic process automation to streamline repetitive tasks, PagerDuty centers on incident management and operational efficiency. Their differing approaches highlight the versatile applications of technology in addressing business needs.
Income Statement Comparison
The table below compares the latest income statements of UiPath Inc. and PagerDuty, Inc. for the fiscal year ending January 31, 2025.
| Metric | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| Market Cap | 10B | 1.11B |
| Revenue | 1.43B | 467M |
| EBITDA | -145M | -11.9M |
| EBIT | -163M | -32.5M |
| Net Income | -74M | -43M |
| EPS | -0.13 | -0.59 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the latest fiscal year, UiPath and PagerDuty both reported negative net incomes, indicating ongoing challenges in profitability. UiPath experienced a revenue increase to 1.43B from 1.31B, reflecting growth, albeit slower than previous years. Meanwhile, PagerDuty’s revenue increased to 467M, up from 431M, showcasing a positive trend. However, both companies are struggling with high operating expenses, which have kept EBITDA in the negative range. This sustained loss may signal the need for strategic adjustments to improve margins and overall financial health moving forward.
Financial Ratios Comparison
The table below presents a comparison of key financial ratios between UiPath Inc. (PATH) and PagerDuty, Inc. (PD) based on the most recent fiscal data available for 2025.
| Metric | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| ROE | -3.99% | -32.92% |
| ROIC | -7.41% | -10.07% |
| P/E | -108.04 | -39.87 |
| 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 | -6.46 |
| Asset Turnover | 0.50 | 0.50 |
| Fixed Asset Turnover | 16.61 | 5.72 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Both companies exhibit negative returns on equity (ROE) and invested capital (ROIC), indicating challenges in profitability. While UiPath maintains a healthier current and quick ratio, suggesting better liquidity, PagerDuty’s significantly higher debt-to-equity ratio raises concerns about financial leverage and risk. Furthermore, both companies lack dividend yields, reflecting a focus on growth rather than returning cash to shareholders. Investors should be cautious given the high debt levels and negative earnings across both firms.
Dividend and Shareholder Returns
Neither UiPath Inc. (PATH) nor PagerDuty, Inc. (PD) currently pays dividends, reflecting their focus on reinvestment and growth. Both companies are in high-growth phases, prioritizing research and development over immediate shareholder returns. While they do not distribute profits, they engage in share buyback programs, which can enhance shareholder value. This strategy may align with long-term value creation, but risks include potential overvaluation and unsustainable cash flows if not managed prudently.
Strategic Positioning
UiPath Inc. (PATH) holds a strong market share in the robotic process automation (RPA) sector, leveraging advanced AI and user-friendly low-code solutions. Competing against major players, it faces pressure to innovate amidst rapid technological advancements. Similarly, PagerDuty, Inc. (PD) operates in the digital operations management space, utilizing machine learning to enhance operational efficiency. Both companies must continuously adapt to competitive pressures and evolving market demands to maintain their positions.
Stock Comparison
In analyzing the weekly stock price performance of UiPath Inc. (PATH) and PagerDuty, Inc. (PD) over the past year, we observe significant price movements and trading dynamics that reflect the underlying market sentiments and company fundamentals.
Trend Analysis
UiPath Inc. (PATH) has experienced a percentage change of -15.27% over the past year. This indicates a bearish trend, characterized by an acceleration in negative price movement. The stock has fluctuated between a high of 26.35 and a low of 10.04, reflecting notable volatility with a standard deviation of 4.02. Recently, however, from September 21 to December 7, 2025, PATH saw a positive price change of 58.26%, suggesting a short-term reversal in trend with a trend slope of 0.25 and a standard deviation of 2.02.
PagerDuty, Inc. (PD), on the other hand, has reported a significant decline of -53.91% over the same period, which also categorizes it as a bearish trend but with a deceleration in its recent price movements. The stock has ranged between 26.23 and 12.00, also indicating considerable volatility with a standard deviation of 3.03. In the recent timeframe from September 21 to December 7, 2025, PD’s stock price decreased by 25.92%, with a trend slope of -0.33, showcasing a weaker position in the market.
Investors should weigh these trends and volatility metrics carefully when considering investments in PATH or PD.
Analyst Opinions
Recent analyst recommendations for UiPath Inc. (PATH) and PagerDuty, Inc. (PD) indicate a consensus buy for both companies in 2025. Analysts have given PATH an A- rating, highlighting strong return on assets (5) and return on equity (4). Similarly, PD also received an A- rating, with exceptional scores in discounted cash flow (5) and return on equity (5), though it faces challenges with a low debt-to-equity score (1). Analysts are optimistic about both companies’ growth potential and financial stability, making them attractive options for investors this year.
Stock Grades
In this section, we will examine the latest stock ratings for UiPath Inc. (PATH) and PagerDuty, Inc. (PD) based on assessments from recognized grading companies.
UiPath Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Canaccord Genuity | Maintain | Buy | 2025-12-04 |
| Mizuho | Maintain | Neutral | 2025-12-04 |
| Barclays | Maintain | Equal Weight | 2025-12-04 |
| BMO Capital | Maintain | Market Perform | 2025-12-04 |
| Needham | Maintain | Hold | 2025-12-04 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-04 |
| Evercore ISI Group | Maintain | In Line | 2025-12-04 |
| RBC Capital | Maintain | Sector Perform | 2025-12-04 |
| UBS | Upgrade | Neutral | 2025-10-23 |
| BMO Capital | Maintain | Market Perform | 2025-10-02 |
PagerDuty, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Outperform | 2025-11-26 |
| Craig-Hallum | Downgrade | Hold | 2025-11-26 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-26 |
| TD Cowen | Maintain | Buy | 2025-11-26 |
| Truist Securities | Maintain | Buy | 2025-11-19 |
| Baird | Maintain | Neutral | 2025-09-04 |
| Canaccord Genuity | Maintain | Buy | 2025-09-04 |
| RBC Capital | Maintain | Outperform | 2025-09-04 |
| Canaccord Genuity | Maintain | Buy | 2025-06-02 |
| Truist Securities | Maintain | Buy | 2025-05-30 |
Overall, the grades for UiPath show a consistent maintenance of ratings across various firms, indicating stability in sentiment. PagerDuty, on the other hand, reflects a mix of maintaining and downgrading actions, suggesting a more cautious outlook from some analysts. This variance in grades highlights the importance of ongoing evaluation in the ever-changing market landscape.
Target Prices
The current target consensus for the companies analyzed reflects differing expectations among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| UiPath Inc. | 17 | 14 | 16 |
| PagerDuty, Inc. | 19 | 15 | 16.75 |
UiPath Inc. has a target consensus of $16, slightly below its current price of $18.785, indicating a potential for minor correction. In contrast, PagerDuty, Inc. shows a target consensus of $16.75, above its current price of $12.08, suggesting a more favorable outlook among analysts.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of UiPath Inc. (PATH) and PagerDuty, Inc. (PD) based on the most recent financial data available.
| Criterion | UiPath Inc. (PATH) | PagerDuty, Inc. (PD) |
|---|---|---|
| Diversification | Moderate | Moderate |
| Profitability | Negative margins | Negative margins |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Growing | Stable |
| Debt level | Low | High |
Key takeaways from this analysis indicate that while both companies show moderate diversification, UiPath has a stronger global presence and innovation capacity. However, both struggle with profitability, which is a critical factor for investors to consider.
Risk Analysis
In this section, I present a concise overview of the risks associated with UiPath Inc. (PATH) and PagerDuty, Inc. (PD).
| Metric | UiPath Inc. | PagerDuty, Inc. |
|---|---|---|
| Market Risk | High | Medium |
| Regulatory Risk | Medium | High |
| Operational Risk | Medium | Medium |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Medium | Medium |
Both companies face significant market and regulatory risks. UiPath’s high market risk stems from its volatile share price, while PagerDuty’s dependence on a diverse customer base poses operational challenges. Recent changes in technology regulations could impact both firms adversely.
Which one to choose?
When comparing UiPath Inc. (PATH) and PagerDuty, Inc. (PD), both companies show significant challenges in profitability, with negative net profit margins. However, UiPath exhibits a slightly better overall financial health with a gross profit margin of 82.73% and a current ratio of 2.93, indicating strong liquidity. Conversely, PagerDuty has a lower gross profit margin at 82.96% and a current ratio of 1.87, revealing tighter liquidity.
Analysts have rated both companies with an A- grade, suggesting a generally favorable outlook. Despite UiPath’s bearish stock trend, it has recently shown a positive price change of 58.26%, while PagerDuty’s stock has seen a more severe decline of 53.91%.
For growth-oriented investors, UiPath may be preferable due to its stronger recent performance and liquidity position, while those seeking a more stable investment might consider PagerDuty, albeit with caution regarding its operational challenges.
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:
