Donnelley Financial Solutions (DFIN) vs PagerDuty (PD)

Donnelley Financial Solutions and PagerDuty are both Software Application companies. Donnelley Financial Solutions and PagerDuty are of similar size ($1.2B and $1.2B). PagerDuty trades at the lower P/E: 7.0× against 32.6×. Donnelley Financial Solutions grew revenue faster over the last twelve months: 2.98% against 2.30%. PagerDuty has the higher net margin (37.5% vs 4.53%) and the lower return on invested capital (12.6% vs 16.2%). Across the 21 metrics below, PagerDuty leads on 11 and Donnelley Financial Solutions on 10.

Valuation

Metric DFIN PD Software Application median
P/E 32.61 7.05 24.79
P/S 1.58 2.25 2.67
P/B 3.17 4.79 3.01
Price to free cash flow 8.06 9.47 16.59
EV/EBITDA 6.58 16.12 14.40
EV/Sales 1.81 2.22 2.62
Earnings yield 3.07% 14.19% 0.00%
Free cash flow yield 12.40% 10.56% 1.91%

Profitability

Metric DFIN PD Software Application median
Gross margin 64.21% 84.84% 67.03%
Operating margin 18.91% 6.47% 0.00%
Net margin 4.53% 37.50% 0.00%
Free cash flow margin 19.59% 23.74% 4.32%
Return on equity 8.59% 89.92% 0.00%
Return on assets 4.12% 20.06% 0.00%
Return on invested capital 16.23% 12.60% 0.00%

Growth

Metric DFIN PD Software Application median
Revenue growth (TTM) 2.98% 2.30% 12.40%
EPS growth (last fiscal year) (62.42%) 416.95% —
Revenue growth, 5-year CAGR (3.03%) 18.19% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DFIN PD Software Application median
Debt to equity 0.53 1.71 0.02
Current ratio 1.33 2.02 1.55
Net debt to EBITDA 0.71 (1.69) 0.06

Dividend

Metric DFIN PD Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric DFIN PD Software Application median
Market cap 1.21b 1.19b 396.11m

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