DDOG vs. ZM: Datadog vs. Zoom Communications Stock Comparison
How do Datadog (DDOG) and Zoom Communications (ZM) 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 Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | DDOG | ZM |
|---|---|---|
| Name | Datadog Inc. Class A | Zoom Communications, Inc. Class A Common Stock |
| 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 | Application Software |
| Market Capitalization | 64.64 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | September 19, 2019 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Total Return (1Y) | -5.64% | 12.58% |
| Total Return (3Y, Annualized) | 21.65% | 14.89% |
| Total Return (5Y, Annualized) | -1.69% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 70.49% | 45.03% |
| Beta (5Y) | 1.57 | 0.99 |
| Max Drawdown (5Y) | -68.11% | -79.08% |
| Avg. Volume (3M) | 3.82M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.14 | 0.18 |
| Sortino Ratio (1Y) | -0.21 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Datadog (DDOG) at 6.43% is closer to the peer norm — stronger capital efficiency for ZM.
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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while Datadog (DDOG) at 6.12% keeps roughly the typical share for its industry.
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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Zoom Communications (ZM) at 24.61% operates in the top operating margin quartile, ahead of Datadog (DDOG) at 6.33%, which runs around its industry’s norm.
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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | DDOG | ZM |
|---|---|---|
| ROE (TTM) | 6.43% | 32.14% |
| ROA (TTM) | 0.91% | 6.11% |
| Net Margin (TTM) | 6.12% | 65.19% |
| Operating Margin (TTM) | 6.33% | 24.61% |
| Gross Margin (TTM) | 79.61% | 77.66% |
Growth
Revenue Growth
Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while Zoom Communications (ZM) at 4.36% is in the bottom quartile, showing a clear gap in revenue momentum.
EPS Growth
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Datadog (DDOG) at -40.38% is in the bottom quartile, showing a clear gap in earnings momentum.
Growth Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Revenue Growth (YoY) | 27.68% | 4.36% |
| Revenue Growth (3Y CAGR) | 26.95% | 3.49% |
| EPS Growth (YoY) | -40.38% | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Both Datadog (DDOG) at 3.51 and Zoom Communications (ZM) at 3.83 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.
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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Datadog (DDOG) at 0.28 runs a more typical debt-to-equity mix.
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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Current Ratio (MRQ) | 3.51 | 3.83 |
| Debt / Equity (MRQ) | 0.28 | 0.01 |
| Net Debt / EBITDA | -23.06 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Datadog (DDOG) nor Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 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 Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | DDOG | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Datadog (DDOG) at 248.67 trades above its peer range — a wide earnings-valuation gap relative to industry 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
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Zoom Communications (ZM) at 2.32 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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | DDOG | ZM |
|---|---|---|
| P/E Ratio (TTM) | 248.67 | 8.34 |
| P/S Ratio (TTM) | 15.11 | 5.25 |
| P/B Ratio (MRQ) | 13.71 | 2.32 |
| Free Cash Flow Yield (TTM) | 1.65% | 7.53% |