Datadog (NASDAQ:DDOG) & Bitfarms (NASDAQ:BITF) Critical Analysis

Datadog (NASDAQ:DDOGGet Free Report) and Bitfarms (NASDAQ:BITFGet Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Earnings & Valuation

This table compares Datadog and Bitfarms”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Datadog $3.43 billion 24.84 $107.74 million $0.49 483.76
Bitfarms $229.28 million 8.47 -$138.65 million ($0.23) -14.00

Datadog has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Datadog, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Datadog and Bitfarms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Datadog 4.48% 5.67% 3.24%
Bitfarms -48.26% -4.48% -3.71%

Volatility & Risk

Datadog has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Datadog and Bitfarms, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Datadog 1 5 38 1 2.87
Bitfarms 1 1 5 0 2.57

Datadog presently has a consensus target price of $276.32, suggesting a potential upside of 16.57%. Bitfarms has a consensus target price of $4.67, suggesting a potential upside of 45.19%. Given Bitfarms’ higher possible upside, analysts clearly believe Bitfarms is more favorable than Datadog.

Insider & Institutional Ownership

78.3% of Datadog shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 6.5% of Datadog shares are held by insiders. Comparatively, 9.5% of Bitfarms shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Datadog beats Bitfarms on 12 of the 15 factors compared between the two stocks.

About Datadog

(Get Free Report)

Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

About Bitfarms

(Get Free Report)

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

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