DDOG vs. MSFT: Datadog vs. Microsoft Stock Comparison
How do Datadog (DDOG) and Microsoft (MSFT) 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 Microsoft (MSFT) both belong to the Software industry, though DDOG is classified under Application Software while MSFT falls under Systems Software.
| Profile Item | DDOG | MSFT |
|---|---|---|
| Name | Datadog Inc. Class A | Microsoft Corporation Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Systems Software |
| Market Capitalization | 64.64 billion USD | 3,940.41 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | September 19, 2019 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Total Return (1Y) | -5.64% | 10.30% |
| Total Return (3Y, Annualized) | 21.65% | 15.53% |
| Total Return (5Y, Annualized) | -1.69% | 11.01% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Volatility (1Y, Annualized) | 70.49% | 33.91% |
| Beta (5Y) | 1.57 | 1.03 |
| Max Drawdown (5Y) | -68.11% | -37.15% |
| Avg. Volume (3M) | 3.82M | 22.95M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Sharpe Ratio (1Y) | -0.14 | 0.18 |
| Sortino Ratio (1Y) | -0.21 | 0.28 |
Profitability
ROE (TTM)
Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Datadog (DDOG) at 6.43% is closer to the peer norm — stronger capital efficiency for MSFT.
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%
MSFT
Software & Services industry group
34.22%
- Max
- 53.85%
- MSFT
- 34.22%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Microsoft (MSFT) at 41.17% 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%
MSFT
Software & Services industry group
41.17%
- MSFT
- 41.17%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Datadog (DDOG) at 6.33% operates around its industry’s norm.
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%
MSFT
Software & Services industry group
49.76%
- MSFT
- 49.76%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| ROE (TTM) | 6.43% | 34.22% |
| ROA (TTM) | 0.91% | 14.41% |
| Net Margin (TTM) | 6.12% | 41.17% |
| Operating Margin (TTM) | 6.33% | 49.76% |
| Gross Margin (TTM) | 79.61% | 67.66% |
Growth
Revenue Growth
Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for DDOG.
EPS Growth
Microsoft (MSFT) at 31.60% is around its peer norm for EPS growth, while Datadog (DDOG) at -40.38% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Revenue Growth (YoY) | 27.68% | 17.79% |
| Revenue Growth (3Y CAGR) | 26.95% | 16.12% |
| EPS Growth (YoY) | -40.38% | 31.60% |
| EPS Growth (3Y CAGR) | -- | 22.86% |
Financial Strength
Current Ratio (MRQ)
Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Datadog (DDOG) at 3.51 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
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
MSFT
Software & Services industry group
1.23
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- MSFT
- 1.23
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Datadog (DDOG) at 0.28 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
MSFT
Software & Services industry group
0.28
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- MSFT
- 0.28
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 3.51 | 1.23 |
| Debt / Equity (MRQ) | 0.28 | 0.28 |
| Net Debt / EBITDA | -23.06 | 0.34 |
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 Microsoft (MSFT) reports a yield of 0.69%, 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%
MSFT
Software & Services industry group
0.69%
- MSFT
- 0.69%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
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 Microsoft (MSFT) reports a payout of 19.00%, 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%
MSFT
Software & Services industry group
19.00%
- MSFT
- 19.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.69% |
| Dividend Payout Ratio (TTM) | 0.00% | 19.00% |
Valuation
P/E Ratio (TTM)
Microsoft (MSFT) at 27.69 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
MSFT
Software & Services industry group
27.69
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- MSFT
- 27.69
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Datadog (DDOG) at 15.11 and Microsoft (MSFT) at 11.37 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
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
MSFT
Software & Services industry group
11.37
- Max
- 17.91
- MSFT
- 11.37
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Microsoft (MSFT) at 8.38 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
MSFT
Software & Services industry group
8.38
- Max
- 16.63
- Q3
- 8.50
- MSFT
- 8.38
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | DDOG | MSFT |
|---|---|---|
| P/E Ratio (TTM) | 248.67 | 27.69 |
| P/S Ratio (TTM) | 15.11 | 11.37 |
| P/B Ratio (MRQ) | 13.71 | 8.38 |
| Free Cash Flow Yield (TTM) | 1.65% | 0.08% |