DDOG vs. NOW: Datadog vs. ServiceNow Stock Comparison
How do Datadog (DDOG) and ServiceNow (NOW) 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 ServiceNow (NOW) both belong to the Software industry, though DDOG is classified under Application Software while NOW falls under Systems Software.
| Profile Item | DDOG | NOW |
|---|---|---|
| Name | Datadog Inc. Class A | ServiceNow Inc. |
| 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 | 105.84 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | September 19, 2019 | June 29, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | DDOG | NOW |
|---|---|---|
| Total Return (1Y) | -5.64% | -39.72% |
| Total Return (3Y, Annualized) | 21.65% | -5.71% |
| Total Return (5Y, Annualized) | -1.69% | -5.55% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | DDOG | NOW |
|---|---|---|
| Volatility (1Y, Annualized) | 70.49% | 64.49% |
| Beta (5Y) | 1.57 | 0.98 |
| Max Drawdown (5Y) | -68.11% | -64.54% |
| Avg. Volume (3M) | 3.82M | 15.74M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | DDOG | NOW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.14 | -0.68 |
| Sortino Ratio (1Y) | -0.21 | -0.89 |
Profitability
ROE (TTM)
Both Datadog (DDOG) at 6.43% and ServiceNow (NOW) at 11.85% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
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%
NOW
Software & Services industry group
11.85%
- Max
- 53.85%
- Q3
- 17.90%
- NOW
- 11.85%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Both Datadog (DDOG) at 6.12% and ServiceNow (NOW) at 9.36% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
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%
NOW
Software & Services industry group
9.36%
- Max
- 41.17%
- Q3
- 15.28%
- NOW
- 9.36%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Datadog (DDOG) at 6.33% and ServiceNow (NOW) at 17.39% 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%
NOW
Software & Services industry group
17.39%
- Max
- 46.89%
- Q3
- 17.64%
- NOW
- 17.39%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | DDOG | NOW |
|---|---|---|
| ROE (TTM) | 6.43% | 11.85% |
| ROA (TTM) | 0.91% | 4.59% |
| Net Margin (TTM) | 6.12% | 9.36% |
| Operating Margin (TTM) | 6.33% | 17.39% |
| Gross Margin (TTM) | 79.61% | 73.08% |
Growth
Revenue Growth
Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while ServiceNow (NOW) at 20.88% is closer to the peer norm — faster top-line expansion for DDOG.
EPS Growth
ServiceNow (NOW) at 22.08% 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 | NOW |
|---|---|---|
| Revenue Growth (YoY) | 27.68% | 20.88% |
| Revenue Growth (3Y CAGR) | 26.95% | 22.38% |
| EPS Growth (YoY) | -40.38% | 22.08% |
| EPS Growth (3Y CAGR) | -- | 73.46% |
Financial Strength
Current Ratio (MRQ)
Datadog (DDOG) at 3.51 carries current ratio above its industry’s typical mid-range, while ServiceNow (NOW) at 0.72 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
NOW
Software & Services industry group
0.72
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- NOW
- 0.72
- Min
- 0.03
Debt / Equity (MRQ)
Both Datadog (DDOG) at 0.28 and ServiceNow (NOW) at 0.64 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
NOW
Software & Services industry group
0.64
- Max
- 2.52
- Q3
- 1.13
- NOW
- 0.64
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | DDOG | NOW |
|---|---|---|
| Current Ratio (MRQ) | 3.51 | 0.72 |
| Debt / Equity (MRQ) | 0.28 | 0.64 |
| Net Debt / EBITDA | -23.06 | 1.18 |
Dividends
Dividend Yield (TTM)
Neither Datadog (DDOG) nor ServiceNow (NOW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
NOW
Software & Services industry group
0.00%
- NOW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Datadog (DDOG) nor ServiceNow (NOW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
NOW
Software & Services industry group
0.00%
- NOW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | DDOG | NOW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: ServiceNow (NOW) at 73.36 sits in the richer P/E ratio quartile, and Datadog (DDOG) at 248.67 is richer still, above its industry range.
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
NOW
Software & Services industry group
73.36
- Max
- 112.94
- NOW
- 73.36
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
ServiceNow (NOW) at 6.86 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
NOW
Software & Services industry group
6.86
- Max
- 17.91
- Q3
- 8.78
- NOW
- 6.86
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
ServiceNow (NOW) at 8.08 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
NOW
Software & Services industry group
8.08
- Max
- 16.63
- Q3
- 8.50
- NOW
- 8.08
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | DDOG | NOW |
|---|---|---|
| P/E Ratio (TTM) | 248.67 | 73.36 |
| P/S Ratio (TTM) | 15.11 | 6.86 |
| P/B Ratio (MRQ) | 13.71 | 8.08 |
| Free Cash Flow Yield (TTM) | 1.65% | 5.44% |