Datadog vs New Relic Which Is More Profitable?

Datadog and New Relic are two leading companies in the rapidly growing field of cloud-based monitoring and analytics software. Both companies offer comprehensive solutions for monitoring the performance of applications, infrastructure, and networks in real-time. Investors are closely watching the stocks of Datadog and New Relic as they continue to innovate and expand their market share. While Datadog has shown strong growth and momentum in recent years, New Relic remains a formidable competitor with a loyal customer base. This comparison will analyze the financial performance and potential future prospects of both companies to help investors make informed decisions.

Datadog or New Relic?

When comparing Datadog and New Relic, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Datadog and New Relic.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Datadog has a dividend yield of -%, while New Relic has a dividend yield of 0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Datadog reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, New Relic reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Datadog P/E ratio at 214.96 and New Relic's P/E ratio at 0.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Datadog P/B ratio is 15.71 while New Relic's P/B ratio is 0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Datadog has seen a 5-year revenue growth of 1.35%, while New Relic's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Datadog's ROE at 8.30% and New Relic's ROE at 0.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $121.52 for Datadog and $0.00 for New Relic. Over the past year, Datadog's prices ranged from $98.80 to $138.61, with a yearly change of 40.29%. New Relic's prices fluctuated between $0.00 and $86.96, with a yearly change of 0.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.