Datadog, Inc. (DDOG) vs SAP SE (SAP)

Datadog, Inc. and SAP SE are both Software Application companies. SAP SE is the larger, with a market value of $242.9B against $92.5B — 2.6× the size. SAP SE trades at the lower P/E: 26.4× against 526×. Datadog, Inc. grew revenue faster over the last twelve months: 31.5% against 14.1%. SAP SE has the higher net margin (20.4% vs 4.48%) and the higher return on invested capital (14.5% vs 2.78%). Across the 22 metrics below, SAP SE leads on 15 and Datadog, Inc. on 7.

Valuation

Metric DDOG SAP Software Application median
P/E 525.75 26.37 24.79
P/S 24.08 5.45 2.67
P/B 21.87 4.62 3.01
Price to free cash flow 89.04 23.90 16.59
EV/EBITDA 760.32 18.08 14.40
EV/Sales 23.07 5.42 2.62
Earnings yield 0.19% 3.79% 0.00%
Free cash flow yield 1.12% 4.18% 1.91%

Profitability

Metric DDOG SAP Software Application median
Gross margin 79.51% 72.77% 67.03%
Operating margin 0.41% 26.74% 0.00%
Net margin 4.48% 20.41% 0.00%
Free cash flow margin 27.04% 22.81% 4.32%
Return on equity 4.70% 18.26% 0.00%
Return on assets 2.66% 10.99% 0.00%
Return on invested capital 2.78% 14.51% 0.00%

Growth

Metric DDOG SAP Software Application median
Revenue growth (TTM) 31.52% 14.06% 12.40%
EPS growth (last fiscal year) (40.38%) 143.45% —
Revenue growth, 5-year CAGR 41.53% 5.92% 13.72%
Net income growth, 5-year CAGR 0.00% 6.63% 0.00%

Health

Metric DDOG SAP Software Application median
Debt to equity 0.23 0.23 0.02
Current ratio 3.20 1.15 1.55
Net debt to EBITDA (88.97) (0.16) 0.06

Dividend

Metric DDOG SAP Software Application median
Dividend yield — 1.28% 1.25%
Payout ratio 0.00 1.39 0.00

Size

Metric DDOG SAP Software Application median
Market cap 92.46b 242.91b 396.11m

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