DDOG vs. MSFT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DDOG and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DDOG | MSFT |
|---|---|---|
| Company Name | Datadog, Inc. | Microsoft Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Software |
| Market Capitalization | 63.79 billion USD | 3,776.90 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | September 19, 2019 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DDOG and MSFT 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.
Historical Performance at a Glance
| Symbol | DDOG | MSFT |
|---|---|---|
| 5-Day Price Return | -7.37% | -0.23% |
| 13-Week Price Return | 45.39% | -1.86% |
| 26-Week Price Return | 57.71% | 12.04% |
| 52-Week Price Return | 44.03% | 18.88% |
| Month-to-Date Return | 13.64% | -1.99% |
| Year-to-Date Return | 29.48% | 20.40% |
| 10-Day Avg. Volume | 6.89M | 23.89M |
| 3-Month Avg. Volume | 4.89M | 20.87M |
| 3-Month Volatility | 60.00% | 16.65% |
| Beta | 1.22 | 1.07 |
Profitability
Return on Equity (TTM)
DDOG
3.48%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
DDOG’s Return on Equity of 3.48% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSFT
31.53%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 31.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
DDOG
3.32%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
DDOG’s Net Profit Margin of 3.32% 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.
MSFT
35.71%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 35.71% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
DDOG
-1.38%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
DDOG has a negative Operating Profit Margin of -1.38%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
MSFT
45.94%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 45.94% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | DDOG | MSFT |
|---|---|---|
| Return on Equity (TTM) | 3.48% | 31.53% |
| Return on Assets (TTM) | 1.80% | 17.84% |
| Net Profit Margin (TTM) | 3.32% | 35.71% |
| Operating Profit Margin (TTM) | -1.38% | 45.94% |
| Gross Profit Margin (TTM) | 79.94% | 68.76% |
Financial Strength
Current Ratio (MRQ)
DDOG
3.66
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
DDOG’s Current Ratio of 3.66 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.
MSFT
1.40
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
MSFT’s Current Ratio of 1.40 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
DDOG
0.29
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
DDOG’s Debt-to-Equity Ratio of 0.29 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.
MSFT
0.27
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.27 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.
Interest Coverage Ratio (TTM)
DDOG
-1.64
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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.
MSFT
891.80
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | DDOG | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 3.66 | 1.40 |
| Quick Ratio (MRQ) | 3.60 | 1.39 |
| Debt-to-Equity Ratio (MRQ) | 0.29 | 0.27 |
| Interest Coverage Ratio (TTM) | -1.64 | 891.80 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DDOG
0.00%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- 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.
MSFT
0.65%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.65% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
DDOG
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- 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.
MSFT
23.52%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.52%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | DDOG | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.65% |
| Dividend Payout Ratio (TTM) | 0.00% | 23.52% |
Valuation
Price-to-Earnings Ratio (TTM)
DDOG
589.72
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
At 589.72, 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.
MSFT
36.14
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
MSFT’s P/E Ratio of 36.14 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
DDOG
19.60
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
DDOG’s P/S Ratio of 19.60 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.
MSFT
12.91
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
MSFT’s P/S Ratio of 12.91 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.
Price-to-Book Ratio (MRQ)
DDOG
14.44
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
DDOG’s P/B Ratio of 14.44 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.
MSFT
10.60
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
MSFT’s P/B Ratio of 10.60 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.
Valuation at a Glance
| Symbol | DDOG | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 589.72 | 36.14 |
| Price-to-Sales Ratio (TTM) | 19.60 | 12.91 |
| Price-to-Book Ratio (MRQ) | 14.44 | 10.60 |
| Price-to-Free Cash Flow Ratio (TTM) | 72.82 | 48.60 |