Datadog, Inc. (DDOG) vs Paychex, Inc. (PAYX)

Datadog, Inc. and Paychex, Inc. are both Software Application companies. Datadog, Inc. is the larger, with a market value of $62.7B against $42.5B — 1.5× the size. Paychex, Inc. trades at the lower P/E: 23.6× against 237×. Datadog, Inc. grew revenue faster over the last twelve months: 33.2% against 14.0%. Paychex, Inc. has the higher net margin (27.4% vs 6.12%) and the higher return on invested capital (22.2% vs 12.9%). Across the 22 metrics below, Paychex, Inc. leads on 16 and Datadog, Inc. on 6.

Valuation

Metric DDOG PAYX Software Application median
P/E 237.41 23.59 25.90
P/S 14.72 6.42 3.04
P/B 13.36 11.44 2.60
Price to free cash flow 56.78 21.02 17.17
EV/EBITDA 488.04 14.14 15.48
EV/Sales 13.73 7.02 2.89
Earnings yield 0.42% 4.24% 0.00%
Free cash flow yield 1.76% 4.76% 1.98%

Profitability

Metric DDOG PAYX Software Application median
Gross margin 79.58% 74.39% 66.89%
Operating margin 2.26% 39.19% 0.00%
Net margin 6.12% 27.35% 0.00%
Free cash flow margin 25.93% 30.54% 5.77%
Return on equity 6.43% 47.06% 0.00%
Return on assets 3.77% 11.17% 0.00%
Return on invested capital 12.91% 22.23% 0.00%

Growth

Metric DDOG PAYX Software Application median
Revenue growth (TTM) 33.21% 13.97% 12.27%
EPS growth (last fiscal year) (40.38%) 6.77% 32.11%
Revenue growth, 5-year CAGR 41.53% 9.93% 14.34%
Net income growth, 5-year CAGR 0.00% 9.91% 0.00%

Health

Metric DDOG PAYX Software Application median
Debt to equity 0.21 1.23 0.02
Current ratio 3.51 1.28 1.53
Net debt to EBITDA (88.97) 1.06 0.09

Dividend

Metric DDOG PAYX Software Application median
Dividend yield — 4.81% 1.10%
Payout ratio — 1.14 0.28

Size

Metric DDOG PAYX Software Application median
Market cap 62.69b 42.54b 487.58m

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