DDOG vs. PANW: Datadog vs. Palo Alto Networks Stock Comparison
How do Datadog (DDOG) and Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) both belong to the Software industry, though DDOG is classified under Application Software while PANW falls under Systems Software.
| Profile Item | DDOG | PANW |
|---|---|---|
| Name | Datadog Inc. Class A | Palo Alto Networks, 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 | 256.86 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | September 19, 2019 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Total Return (1Y) | -5.64% | 53.99% |
| Total Return (3Y, Annualized) | 21.65% | 39.16% |
| Total Return (5Y, Annualized) | -1.69% | 30.80% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 70.49% | 51.34% |
| Beta (5Y) | 1.57 | 1.00 |
| Max Drawdown (5Y) | -68.11% | -36.01% |
| Avg. Volume (3M) | 3.82M | 6.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.14 | 0.97 |
| Sortino Ratio (1Y) | -0.21 | 1.49 |
Profitability
ROE (TTM)
Both Datadog (DDOG) at 6.43% and Palo Alto Networks (PANW) at 1.74% 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%
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Both Datadog (DDOG) at 6.12% and Palo Alto Networks (PANW) at 2.67% 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%
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Datadog (DDOG) at 6.33% and Palo Alto Networks (PANW) at 5.40% 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%
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | DDOG | PANW |
|---|---|---|
| ROE (TTM) | 6.43% | 1.74% |
| ROA (TTM) | 0.91% | 1.40% |
| Net Margin (TTM) | 6.12% | 2.67% |
| Operating Margin (TTM) | 6.33% | 5.40% |
| Gross Margin (TTM) | 79.61% | 70.38% |
Growth
Revenue Growth
Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while Palo Alto Networks (PANW) at 24.50% is closer to the peer norm — faster top-line expansion for DDOG.
EPS Growth
Both Datadog (DDOG) at -40.38% and Palo Alto Networks (PANW) at -75.00% post bottom-quartile EPS growth versus peers, pointing to weaker earnings momentum than typical rivals.
Growth Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Revenue Growth (YoY) | 27.68% | 24.50% |
| Revenue Growth (3Y CAGR) | 26.95% | 18.54% |
| EPS Growth (YoY) | -40.38% | -75.00% |
| EPS Growth (3Y CAGR) | -- | -14.50% |
Financial Strength
Current Ratio (MRQ)
Datadog (DDOG) at 3.51 carries current ratio above its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 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
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Both Datadog (DDOG) at 0.28 and Palo Alto Networks (PANW) at 0.09 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
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Current Ratio (MRQ) | 3.51 | 0.87 |
| Debt / Equity (MRQ) | 0.28 | 0.09 |
| Net Debt / EBITDA | -23.06 | -0.32 |
Dividends
Dividend Yield (TTM)
Neither Datadog (DDOG) nor Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 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 Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | DDOG | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Datadog (DDOG) at 248.67 and Palo Alto Networks (PANW) at 784.60 trade above their industries’ P/E ratio peer ranges, pointing to unusually expensive trailing earnings relative to peers.
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
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both look expensive on sales: Datadog (DDOG) at 15.11 sits in the upper P/S ratio quartile, and Palo Alto Networks (PANW) at 22.37 prices even higher, above its industry range.
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
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both Datadog (DDOG) at 13.71 and Palo Alto Networks (PANW) at 9.30 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | DDOG | PANW |
|---|---|---|
| P/E Ratio (TTM) | 248.67 | 784.60 |
| P/S Ratio (TTM) | 15.11 | 22.37 |
| P/B Ratio (MRQ) | 13.71 | 9.30 |
| Free Cash Flow Yield (TTM) | 1.65% | 1.65% |