Seek Returns logo

DDOG vs. MCHP: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at DDOG and MCHP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolDDOGMCHP
Company NameDatadog, Inc.Microchip Technology Incorporated
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
Market Capitalization44.89 billion USD35.48 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 19, 2019March 19, 1993
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of DDOG and MCHP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

DDOG vs. MCHP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolDDOGMCHP
5-Day Price Return-5.62%-0.71%
13-Week Price Return13.48%7.86%
26-Week Price Return-11.14%23.80%
52-Week Price Return14.76%-13.96%
Month-to-Date Return-8.05%-2.72%
Year-to-Date Return-9.92%14.65%
10-Day Avg. Volume8.10M11.68M
3-Month Avg. Volume6.58M10.69M
3-Month Volatility44.64%44.06%
Beta1.231.57

Profitability

Return on Equity (TTM)

DDOG

4.35%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

DDOG’s Return on Equity of 4.35% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

MCHP

-0.01%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

MCHP has a negative Return on Equity of -0.01%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

DDOG vs. MCHP: A comparison of their Return on Equity (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Net Profit Margin (TTM)

DDOG

4.13%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

DDOG’s Net Profit Margin of 4.13% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

MCHP

-0.01%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

MCHP has a negative Net Profit Margin of -0.01%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

DDOG vs. MCHP: A comparison of their Net Profit Margin (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Operating Profit Margin (TTM)

DDOG

-0.61%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

DDOG has a negative Operating Profit Margin of -0.61%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

MCHP

6.69%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

MCHP’s Operating Profit Margin of 6.69% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

DDOG vs. MCHP: A comparison of their Operating Profit Margin (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolDDOGMCHP
Return on Equity (TTM)4.35%-0.01%
Return on Assets (TTM)2.24%0.00%
Net Profit Margin (TTM)4.13%-0.01%
Operating Profit Margin (TTM)-0.61%6.69%
Gross Profit Margin (TTM)79.92%56.07%

Financial Strength

Current Ratio (MRQ)

DDOG

3.43

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

DDOG’s Current Ratio of 3.43 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

MCHP

2.59

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

MCHP’s Current Ratio of 2.59 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

DDOG vs. MCHP: A comparison of their Current Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

DDOG

0.31

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

DDOG’s Debt-to-Equity Ratio of 0.31 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MCHP

0.80

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

MCHP’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.80. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

DDOG vs. MCHP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

DDOG

-1.64

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

DDOG has a negative Interest Coverage Ratio of -1.64. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MCHP

1.16

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, MCHP’s Interest Coverage Ratio of 1.16 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

DDOG vs. MCHP: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolDDOGMCHP
Current Ratio (MRQ)3.432.59
Quick Ratio (MRQ)3.381.47
Debt-to-Equity Ratio (MRQ)0.310.80
Interest Coverage Ratio (TTM)-1.641.16

Growth

Revenue Growth

DDOG vs. MCHP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

DDOG vs. MCHP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

DDOG

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

DDOG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MCHP

2.78%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.78%, MCHP offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.

DDOG vs. MCHP: A comparison of their Dividend Yield (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

DDOG

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

DDOG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MCHP

123.62%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

MCHP’s Dividend Payout Ratio of 123.62% is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

DDOG vs. MCHP: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolDDOGMCHP
Dividend Yield (TTM)0.00%2.78%
Dividend Payout Ratio (TTM)0.00%123.62%

Valuation

Price-to-Earnings Ratio (TTM)

DDOG

359.19

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

At 359.19, DDOG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

MCHP

--

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

P/E Ratio data for MCHP is currently unavailable.

DDOG vs. MCHP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

DDOG

14.84

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

DDOG’s P/S Ratio of 14.84 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

MCHP

7.99

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

MCHP’s P/S Ratio of 7.99 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

DDOG vs. MCHP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

DDOG

14.52

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

DDOG’s P/B Ratio of 14.52 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

MCHP

3.68

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

MCHP’s P/B Ratio of 3.68 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

DDOG vs. MCHP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolDDOGMCHP
Price-to-Earnings Ratio (TTM)359.19--
Price-to-Sales Ratio (TTM)14.847.99
Price-to-Book Ratio (MRQ)14.523.68
Price-to-Free Cash Flow Ratio (TTM)52.3845.53