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

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Here’s a clear look at DDOG and SNPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolDDOGSNPS
Company NameDatadog, Inc.Synopsys, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSoftware
Market Capitalization44.89 billion USD114.46 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 19, 2019February 26, 1992
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of DDOG and SNPS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

DDOG vs. SNPS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolDDOGSNPS
5-Day Price Return-5.62%-0.28%
13-Week Price Return13.48%22.35%
26-Week Price Return-11.14%16.02%
52-Week Price Return14.76%18.76%
Month-to-Date Return-8.05%-2.35%
Year-to-Date Return-9.92%27.45%
10-Day Avg. Volume8.10M1.09M
3-Month Avg. Volume6.58M1.58M
3-Month Volatility44.64%37.05%
Beta1.231.16

Profitability

Return on Equity (TTM)

DDOG

4.35%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

DDOG’s Return on Equity of 4.35% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

SNPS

24.09%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

In the upper quartile for the Software industry, SNPS’s Return on Equity of 24.09% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

DDOG vs. SNPS: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

DDOG

4.13%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

DDOG’s Net Profit Margin of 4.13% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

SNPS

34.77%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 34.77% places SNPS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

DDOG vs. SNPS: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

DDOG

-0.61%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

DDOG has a negative Operating Profit Margin of -0.61%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

SNPS

20.88%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 20.88% places SNPS in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

DDOG vs. SNPS: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

SymbolDDOGSNPS
Return on Equity (TTM)4.35%24.09%
Return on Assets (TTM)2.24%14.06%
Net Profit Margin (TTM)4.13%34.77%
Operating Profit Margin (TTM)-0.61%20.88%
Gross Profit Margin (TTM)79.92%79.84%

Financial Strength

Current Ratio (MRQ)

DDOG

3.43

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

DDOG’s Current Ratio of 3.43 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

SNPS

7.02

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

SNPS’s Current Ratio of 7.02 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

DDOG vs. SNPS: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

DDOG

0.31

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

DDOG’s Debt-to-Equity Ratio of 0.31 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SNPS

1.01

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

SNPS’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.01. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

DDOG vs. SNPS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

DDOG

-1.64

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

DDOG has a negative Interest Coverage Ratio of -1.64. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

SNPS

257.02

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

With an Interest Coverage Ratio of 257.02, SNPS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

DDOG vs. SNPS: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

SymbolDDOGSNPS
Current Ratio (MRQ)3.437.02
Quick Ratio (MRQ)3.386.72
Debt-to-Equity Ratio (MRQ)0.311.01
Interest Coverage Ratio (TTM)-1.64257.02

Growth

Revenue Growth

DDOG vs. SNPS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

DDOG vs. SNPS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

DDOG

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

DDOG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

SNPS

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

SNPS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

DDOG vs. SNPS: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

DDOG

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

DDOG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

SNPS

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

SNPS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

DDOG vs. SNPS: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

SymbolDDOGSNPS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

DDOG

359.19

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

At 359.19, DDOG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

SNPS

53.38

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

SNPS’s P/E Ratio of 53.38 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

DDOG vs. SNPS: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

DDOG

14.84

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

DDOG’s P/S Ratio of 14.84 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SNPS

18.56

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

SNPS’s P/S Ratio of 18.56 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

DDOG vs. SNPS: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

DDOG

14.52

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

DDOG’s P/B Ratio of 14.52 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

SNPS

7.16

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

SNPS’s P/B Ratio of 7.16 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

DDOG vs. SNPS: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

SymbolDDOGSNPS
Price-to-Earnings Ratio (TTM)359.1953.38
Price-to-Sales Ratio (TTM)14.8418.56
Price-to-Book Ratio (MRQ)14.527.16
Price-to-Free Cash Flow Ratio (TTM)52.3898.17