Fastly vs Datadog Which Should You Buy?

Fastly and Datadog are two prominent players in the tech industry, specializing in cloud computing and monitoring services. Fastly, known for its content delivery network, has seen steady growth in its stock price over the years. Datadog, on the other hand, offers a comprehensive monitoring and analytics platform for cloud applications. Both companies have shown resilience in the market, attracting investors with their innovative technology and strong financial performance. Let's dive deeper into the comparison of Fastly vs Datadog stocks to understand their strengths and potential for future growth.

Fastly or Datadog?

When comparing Fastly and Datadog, 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 Fastly and Datadog.

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. Fastly has a dividend yield of -%, while Datadog has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fastly reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Datadog 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 Fastly P/E ratio at -9.67 and Datadog's P/E ratio at 272.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fastly P/B ratio is 1.48 while Datadog's P/B ratio is 19.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fastly has seen a 5-year revenue growth of 1.15%, while Datadog's is 1.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fastly's ROE at -15.15% and Datadog's ROE at 8.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.12 for Fastly and $153.14 for Datadog. Over the past year, Fastly's prices ranged from $5.52 to $25.87, with a yearly change of 368.66%. Datadog's prices fluctuated between $98.80 and $170.08, with a yearly change of 72.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.