Seek Returns

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.

Company profile comparison for Datadog (DDOG) and ServiceNow (NOW)
Profile ItemDDOGNOW
NameDatadog Inc. Class AServiceNow Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareSystems Software
Market Capitalization64.64 billion USD105.84 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateSeptember 19, 2019June 29, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

DDOG
NOW
GSPC
Loading price history…
Datadog (DDOG) vs. ServiceNow (NOW), 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

Loading price history…
Trailing total returns for Datadog (DDOG) and ServiceNow (NOW). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Datadog (DDOG) and ServiceNow (NOW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
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

DDOG
NOW
GSPC
Loading price history…
Datadog (DDOG) vs. ServiceNow (NOW), 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

Loading price history…
Distribution of monthly total returns for Datadog (DDOG) and ServiceNow (NOW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
Volatility (1Y, Annualized)70.49%64.49%
Beta (5Y)1.570.98
Max Drawdown (5Y)-68.11%-64.54%
Avg. Volume (3M)3.82M15.74M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
DDOG and NOW 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 ServiceNow (NOW)
MetricDDOGNOW
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%
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their ROE against the Software & Services industry group benchmark.

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%
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their net margin against the Software & Services industry group benchmark.

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%
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
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.

Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their Revenue Growth across different time periods.

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.

Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
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
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their current ratio against the Software & Services industry group benchmark.

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
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): 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 ServiceNow (NOW)
MetricDDOGNOW
Current Ratio (MRQ)3.510.72
Debt / Equity (MRQ)0.280.64
Net Debt / EBITDA-23.061.18

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%
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their dividend yield against the Software & Services industry group benchmark.

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%
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
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
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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
Loading chart…
Datadog (DDOG) vs. ServiceNow (NOW): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Datadog (DDOG) and ServiceNow (NOW)
MetricDDOGNOW
P/E Ratio (TTM)248.6773.36
P/S Ratio (TTM)15.116.86
P/B Ratio (MRQ)13.718.08
Free Cash Flow Yield (TTM)1.65%5.44%