Datadog vs SolarWinds Which Is a Smarter Choice?

Datadog and SolarWinds are two leading companies in the rapidly growing field of network monitoring and management. Datadog, founded in 2010, offers a cloud-based monitoring platform that provides real-time visibility into the performance of applications and infrastructure. SolarWinds, on the other hand, has been in the industry since 1999 and offers a comprehensive suite of network management tools for IT professionals. Investors are closely watching both stocks as they compete for market share and continue to innovate in the dynamic tech sector.

Datadog or SolarWinds?

When comparing Datadog and SolarWinds, 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 SolarWinds.

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 SolarWinds has a dividend yield of 6.79%. 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, SolarWinds reports a 5-year dividend growth of 0.00% year and a payout ratio of 435.01%.

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 268.84 and SolarWinds's P/E ratio at 64.72. 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 19.65 while SolarWinds's P/B ratio is 1.83.

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 SolarWinds's is -0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Datadog's ROE at 8.30% and SolarWinds's ROE at 2.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $152.66 for Datadog and $14.57 for SolarWinds. Over the past year, Datadog's prices ranged from $98.80 to $170.08, with a yearly change of 72.15%. SolarWinds's prices fluctuated between $10.14 and $14.93, with a yearly change of 47.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.