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DDOG vs. ZS: Datadog vs. Zscaler Stock Comparison

How do Datadog (DDOG) and Zscaler (ZS) 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 Zscaler (ZS) both belong to the Software industry, though DDOG is classified under Application Software while ZS falls under Systems Software.

Company profile comparison for Datadog (DDOG) and Zscaler (ZS)
Profile ItemDDOGZS
NameDatadog Inc. Class AZscaler 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 USD32.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateSeptember 19, 2019March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

DDOG
ZS
GSPC
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Datadog (DDOG) vs. Zscaler (ZS), 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

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Trailing total returns for Datadog (DDOG) and Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Datadog (DDOG) and Zscaler (ZS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
Total Return (1Y)-5.64%-37.61%
Total Return (3Y, Annualized)21.65%5.36%
Total Return (5Y, Annualized)-1.69%-10.75%

Risk Profile

Drawdown History

DDOG
ZS
GSPC
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Datadog (DDOG) vs. Zscaler (ZS), 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

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Distribution of monthly total returns for Datadog (DDOG) and Zscaler (ZS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
Volatility (1Y, Annualized)70.49%68.66%
Beta (5Y)1.570.88
Max Drawdown (5Y)-68.11%-76.41%
Avg. Volume (3M)3.82M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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DDOG and ZS 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 Zscaler (ZS)
MetricDDOGZS
Sharpe Ratio (1Y)-0.14-0.61
Sortino Ratio (1Y)-0.21-0.79

Profitability

ROE (TTM)

Zscaler (ZS) reports a negative ROE of -2.87%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Datadog (DDOG) reports 6.43%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-2.87%

Max
53.85%
Q3
17.90%
Median
6.59%
ZS
-2.87%
Q1
-9.59%
Min
-50.52%
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zscaler (ZS) reports a negative net margin of -1.89%, usually indicating a net loss over the period. Meanwhile Datadog (DDOG) reports 6.12%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-1.89%

Max
41.17%
Q3
15.28%
Median
4.63%
ZS
-1.89%
Q1
-5.42%
Min
-33.17%
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Zscaler (ZS) reports a negative operating margin of -1.01%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Datadog (DDOG) reports 6.33%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-1.01%

Max
46.89%
Q3
17.64%
Median
8.73%
ZS
-1.01%
Q1
-2.13%
Min
-30.45%
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
ROE (TTM)6.43%-2.87%
ROA (TTM)0.91%-1.03%
Net Margin (TTM)6.12%-1.89%
Operating Margin (TTM)6.33%-1.01%
Gross Margin (TTM)79.61%76.87%

Growth

Revenue Growth

Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while Zscaler (ZS) at 25.42% is closer to the peer norm — faster top-line expansion for DDOG.

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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Datadog (DDOG) reports EPS growth of -40.38%, ranked against its industry; Zscaler (ZS) has no EPS growth figure this period.

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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
Revenue Growth (YoY)27.68%25.42%
Revenue Growth (3Y CAGR)26.95%27.51%
EPS Growth (YoY)-40.38%--
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Zscaler (ZS) at 1.70 keeps current ratio within its industry’s typical mid-range, while Datadog (DDOG) at 3.51 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

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

ZS

Software & Services industry group

1.70

Max
5.11
Q3
2.77
ZS
1.70
Median
1.67
Q1
1.01
Min
0.03
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Datadog (DDOG) at 0.28 and Zscaler (ZS) at 0.72 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

ZS

Software & Services industry group

0.72

Max
2.52
Q3
1.13
ZS
0.72
Median
0.40
Q1
0.07
Min
0.00
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Datadog (DDOG) vs. Zscaler (ZS): 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 Zscaler (ZS)
MetricDDOGZS
Current Ratio (MRQ)3.511.70
Debt / Equity (MRQ)0.280.72
Net Debt / EBITDA-23.06-36.63

Dividends

Dividend Yield (TTM)

Neither Datadog (DDOG) nor Zscaler (ZS) 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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Datadog (DDOG) nor Zscaler (ZS) 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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Datadog (DDOG) trades at 248.67 times trailing earnings, ranked against its peers, while Zscaler (ZS) has no P/E ratio this period.

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

ZS

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
ZS
--
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Datadog (DDOG) vs. Zscaler (ZS): ZS does not report P/E ratio, so it has no value marker; DDOG is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both Datadog (DDOG) at 15.11 and Zscaler (ZS) at 9.61 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

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

ZS

Software & Services industry group

9.61

Max
17.91
ZS
9.61
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Both Datadog (DDOG) at 13.71 and Zscaler (ZS) at 12.40 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

ZS

Software & Services industry group

12.40

Max
16.63
ZS
12.40
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Datadog (DDOG) vs. Zscaler (ZS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Datadog (DDOG) and Zscaler (ZS)
MetricDDOGZS
P/E Ratio (TTM)248.67--
P/S Ratio (TTM)15.119.61
P/B Ratio (MRQ)13.7112.40
Free Cash Flow Yield (TTM)1.65%3.34%