Datadog (NASDAQ:DDOG) versus VTEX (NYSE:VTEX) Head to Head Analysis

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

Risk & Volatility

Datadog has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, VTEX has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

78.3% of Datadog shares are held by institutional investors. Comparatively, 63.7% of VTEX shares are held by institutional investors. 6.5% of Datadog shares are held by insiders. Comparatively, 40.9% of VTEX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Datadog and VTEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datadog	$3.43 billion	26.87	$107.74 million	$0.49	523.33
VTEX	$240.52 million	2.98	$20.01 million	$0.16	26.28

Datadog has higher revenue and earnings than VTEX. VTEX 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 VTEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Datadog	4.48%	5.67%	3.24%
VTEX	11.98%	12.98%	8.76%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Datadog and VTEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datadog	1	3	40	3	2.96
VTEX	0	6	2	0	2.25

Datadog currently has a consensus target price of $285.04, suggesting a potential upside of 11.16%. VTEX has a consensus target price of $4.60, suggesting a potential upside of 9.39%. Given Datadog’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Datadog is more favorable than VTEX.

Summary

Datadog beats VTEX on 11 of the 15 factors compared between the two stocks.

About Datadog

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 VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.