DDOG vs. SAP: A Head-to-Head Stock Comparison

Company Overview

SAP’s market capitalization of 342.23 billion USD is significantly greater than DDOG’s 41.60 billion USD, highlighting its more substantial market valuation.

With betas of 1.00 for DDOG and 0.94 for SAP, both stocks show similar sensitivity to overall market movements.

SAP is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. DDOG, on the other hand, is a domestic entity.

Performance Comparison

This chart compares the performance of DDOG and SAP over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of DDOG and SAP. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• DDOG’s Price-to-Earnings (P/E) ratio of 249.32 and SAP’s P/E ratio of 51.87 are both very high. For DDOG, this elevated P/E suggests that significant expectations for future earnings growth are already built into its stock price, or it may be overvalued. SAP’s very high P/E also implies its valuation is rich, possibly indicating market optimism about its prospects or a risk of being overstretched.
• DDOG’s Forward PEG ratio of 18.99 and SAP’s Forward PEG ratio of 2.61 are both considered very high. For DDOG, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. SAP’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.

Dividend Comparison

DDOG currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while SAP provides a 0.92% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

Explore the financial strength details for DDOG and SAP in the table below.