Datadog (NASDAQ:DDOG) and Twilio (NYSE:TWLO) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Profitability
This table compares Datadog and Twilio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Datadog | -1.39% | 0.38% | 0.23% |
Twilio | -26.01% | -5.43% | -4.53% |
Volatility and Risk
Datadog has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Twilio has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Institutional and Insider Ownership
45.7% of Datadog shares are held by institutional investors. Comparatively, 82.5% of Twilio shares are held by institutional investors. 26.1% of Datadog shares are held by company insiders. Comparatively, 6.7% of Twilio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Datadog and Twilio, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Datadog | 1 | 10 | 11 | 0 | 2.45 |
Twilio | 0 | 1 | 22 | 0 | 2.96 |
Datadog presently has a consensus target price of $110.3889, suggesting a potential upside of 24.31%. Twilio has a consensus target price of $443.75, suggesting a potential upside of 20.51%. Given Datadog's higher probable upside, equities research analysts plainly believe Datadog is more favorable than Twilio.
Valuation and Earnings
This table compares Datadog and Twilio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Datadog | $362.78 million | 75.02 | $-16,710,000.00 | ($0.15) | -592.00 |
Twilio | $1.13 billion | 55.34 | $-307,060,000.00 | ($1.83) | -201.22 |
Datadog has higher earnings, but lower revenue than Twilio. Datadog is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.
Summary
Datadog beats Twilio on 8 of the 14 factors compared between the two stocks.