New Relic vs Datadog Which Is Stronger?

New Relic and Datadog are two leading companies in the tech industry that provide monitoring and analytics solutions for developers and IT operations teams. Both companies have seen significant growth in the past few years, with their stocks being closely watched by investors. New Relic focuses on application performance monitoring, while Datadog offers a more comprehensive platform that includes infrastructure monitoring and log management. Investors are constantly comparing the two companies, as they continue to innovate and expand their offerings in a rapidly growing market.

New Relic or Datadog?

When comparing New Relic 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 New Relic 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. New Relic has a dividend yield of 0%, while Datadog has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. New Relic 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 New Relic P/E ratio at 0.00 and Datadog's P/E ratio at 214.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. New Relic P/B ratio is 0.00 while Datadog's P/B ratio is 15.71.

Growth Investors:

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

Retail Investors:

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