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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.

Company profile comparison for Datadog (DDOG) and Microsoft (MSFT)
Profile ItemDDOGMSFT
NameDatadog Inc. Class AMicrosoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareSystems Software
Market Capitalization64.64 billion USD3,940.41 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateSeptember 19, 2019March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

DDOG
MSFT
GSPC
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Datadog (DDOG) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
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

DDOG
MSFT
GSPC
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Datadog (DDOG) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
Volatility (1Y, Annualized)70.49%33.91%
Beta (5Y)1.571.03
Max Drawdown (5Y)-68.11%-37.15%
Avg. Volume (3M)3.82M22.95M

Risk-Adjusted Performance

Risk-Return Positioning

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DDOG and MSFT 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 Microsoft (MSFT)
MetricDDOGMSFT
Sharpe Ratio (1Y)-0.140.18
Sortino Ratio (1Y)-0.210.28

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%
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their ROE against the Software & Services industry group benchmark.

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%
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their net margin against the Software & Services industry group benchmark.

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%
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
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.

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

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.

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

Growth Metrics

Growth metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
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
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their current ratio against the Software & Services industry group benchmark.

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
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Datadog (DDOG) vs. Microsoft (MSFT): 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 Microsoft (MSFT)
MetricDDOGMSFT
Current Ratio (MRQ)3.511.23
Debt / Equity (MRQ)0.280.28
Net Debt / EBITDA-23.060.34

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%
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Datadog (DDOG) vs. Microsoft (MSFT): 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 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%
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
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
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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
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Datadog (DDOG) vs. Microsoft (MSFT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Datadog (DDOG) and Microsoft (MSFT)
MetricDDOGMSFT
P/E Ratio (TTM)248.6727.69
P/S Ratio (TTM)15.1111.37
P/B Ratio (MRQ)13.718.38
Free Cash Flow Yield (TTM)1.65%0.08%