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DDOG vs. IBM: Datadog vs. IBM Stock Comparison

How do Datadog (DDOG) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Datadog (DDOG) and IBM (IBM) both fall under the Software & Services industry group, but DDOG is classified in Software while IBM is classified in IT Services.

Company profile comparison for Datadog (DDOG) and IBM (IBM)
Profile ItemDDOGIBM
NameDatadog Inc. Class AInternational Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustryApplication SoftwareIT Consulting & Other Services
Market Capitalization64.64 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateSeptember 19, 2019January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

DDOG
IBM
GSPC
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Datadog (DDOG) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Datadog (DDOG) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Datadog (DDOG) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Total Return (1Y)-5.64%-16.98%
Total Return (3Y, Annualized)21.65%22.40%
Total Return (5Y, Annualized)-1.69%19.64%

Risk Profile

Drawdown History

DDOG
IBM
GSPC
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Datadog (DDOG) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Datadog (DDOG) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Volatility (1Y, Annualized)70.49%48.48%
Beta (5Y)1.570.79
Max Drawdown (5Y)-68.11%-37.50%
Avg. Volume (3M)3.82M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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DDOG and IBM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Sharpe Ratio (1Y)-0.14-0.44
Sortino Ratio (1Y)-0.21-0.56

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Datadog (DDOG) at 6.43% is closer to the peer norm — stronger capital efficiency for IBM.

DDOG

Software & Services industry group

6.43%

Max
53.85%
Q3
17.90%
Median
6.59%
DDOG
6.43%
Q1
-9.59%
Min
-50.52%

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Datadog (DDOG) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Datadog (DDOG) at 6.12%, which keeps about the industry-typical share.

DDOG

Software & Services industry group

6.12%

Max
41.17%
Q3
15.28%
DDOG
6.12%
Median
4.63%
Q1
-5.42%
Min
-33.17%

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Datadog (DDOG) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Datadog (DDOG) at 6.33% and IBM (IBM) at 16.97% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

DDOG

Software & Services industry group

6.33%

Max
46.89%
Q3
17.64%
Median
8.73%
DDOG
6.33%
Q1
-2.13%
Min
-30.45%

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Datadog (DDOG) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
ROE (TTM)6.43%34.77%
ROA (TTM)0.91%5.33%
Net Margin (TTM)6.12%15.99%
Operating Margin (TTM)6.33%16.97%
Gross Margin (TTM)79.61%57.97%

Growth

Revenue Growth

Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while IBM (IBM) at 7.62% is closer to the peer norm — faster top-line expansion for DDOG.

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Datadog (DDOG) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Datadog (DDOG) at -40.38% is in the bottom quartile, showing a clear gap in earnings momentum.

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Datadog (DDOG) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Revenue Growth (YoY)27.68%7.62%
Revenue Growth (3Y CAGR)26.95%3.72%
EPS Growth (YoY)-40.38%73.72%
EPS Growth (3Y CAGR)--83.76%

Financial Strength

Current Ratio (MRQ)

Datadog (DDOG) at 3.51 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

DDOG

Software & Services industry group

3.51

Max
5.11
DDOG
3.51
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03
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Datadog (DDOG) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Datadog (DDOG) at 0.28 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

DDOG

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
DDOG
0.28
Q1
0.07
Min
0.00

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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Datadog (DDOG) vs. IBM (IBM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Current Ratio (MRQ)3.510.86
Debt / Equity (MRQ)0.281.85
Net Debt / EBITDA-23.063.37

Dividends

Dividend Yield (TTM)

Datadog (DDOG) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.

DDOG

Software & Services industry group

0.00%

DDOG
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Datadog (DDOG) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Datadog (DDOG) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.

DDOG

Software & Services industry group

0.00%

DDOG
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Datadog (DDOG) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%57.51%

Valuation

P/E Ratio (TTM)

IBM (IBM) at 20.90 is near its industry’s usual P/E ratio, while Datadog (DDOG) at 248.67 sits above its peer range — an unusually expensive price for DDOG’s trailing earnings.

DDOG

Software & Services industry group

248.67

DDOG
248.67
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69
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Datadog (DDOG) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Datadog (DDOG) at 15.11 sits in the pricier quartile — DDOG costs more per dollar of sales.

DDOG

Software & Services industry group

15.11

Max
17.91
DDOG
15.11
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02
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Datadog (DDOG) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.52 is valued about in line with its industry on P/B ratio, while Datadog (DDOG) at 13.71 carries an above-peer premium to book — DDOG is pricier on assets.

DDOG

Software & Services industry group

13.71

Max
16.63
DDOG
13.71
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90
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Datadog (DDOG) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Datadog (DDOG) and IBM (IBM)
MetricDDOGIBM
P/E Ratio (TTM)248.6720.90
P/S Ratio (TTM)15.113.31
P/B Ratio (MRQ)13.716.52
Free Cash Flow Yield (TTM)1.65%5.34%