In today’s dynamic technology sector, Autodesk, Inc. and Datadog, Inc. stand out as innovators reshaping their respective markets. Autodesk leads in 3D design and engineering software, while Datadog excels in cloud infrastructure monitoring and analytics. Both companies operate in the software application industry, targeting critical business needs with cutting-edge solutions. This article will help you determine which of these tech giants offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Autodesk and Datadog by providing an overview of these two companies and their main differences.
Autodesk Overview
Autodesk, Inc. specializes in 3D design, engineering, and entertainment software, serving global markets with products like AutoCAD, BIM 360, and Fusion 360. The company targets professionals in architecture, engineering, construction, manufacturing, and media industries. Headquartered in San Rafael, California, Autodesk employs around 15,300 full-time staff and operates in the application software sector with a market cap of approximately 56.6B USD.
Datadog Overview
Datadog, Inc. offers a SaaS monitoring and analytics platform designed for developers, IT operations, and business users focusing on cloud infrastructure. Its services include application performance monitoring, log management, security, and incident management. Based in New York City with 6,500 employees, Datadog operates in the same software application sector and has a market cap near 41.7B USD, serving clients across North America and internationally.
Key similarities and differences
Both Autodesk and Datadog operate in the technology sector under the software application industry, offering cloud-based solutions to enhance business operations. However, Autodesk focuses on design and engineering software across multiple industries, while Datadog specializes in IT infrastructure monitoring and analytics. Autodesk’s workforce is more than double that of Datadog, and its market capitalization is notably higher, reflecting differences in scale and product focus.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Autodesk, Inc. and Datadog, Inc. for their most recent fiscal years.
| Metric | Autodesk, Inc. (ADSK) | Datadog, Inc. (DDOG) |
|---|---|---|
| Market Cap | 56.6B | 41.7B |
| Revenue | 6.13B | 2.68B |
| EBITDA | 1.55B | 318M |
| EBIT | 1.37B | 211M |
| Net Income | 1.11B | 184M |
| EPS | 5.17 | 0.55 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Autodesk, Inc.
Autodesk’s revenue increased steadily from 3.79B in 2021 to 6.13B in 2025, reflecting a 61.74% growth over the period. Net income showed volatility, peaking at 1.21B in 2021 but declining to 1.11B in 2025. Margins remain strong, with a gross margin above 90% and net margin at 18.14% in 2025. The latest year saw revenue growth of 12.7% and margin improvements, signaling solid operational efficiency.
Datadog, Inc.
Datadog experienced rapid revenue growth, rising from 603M in 2020 to 2.68B in 2024, a 344.81% increase over five years. Net income turned positive and grew significantly to 184M in 2024 after losses in earlier years. Gross margin stayed favorable at 80.76%, while net margin improved to 6.85%. The most recent year showed a strong revenue increase of 26.1% and a robust net margin expansion, indicating improving profitability.
Which one has the stronger fundamentals?
Autodesk exhibits high and stable margins with consistent revenue growth, though net income growth has been less favorable over the full period. Datadog demonstrates exceptional top-line and bottom-line growth improvements recently, transitioning from losses to profitability with expanding margins. Both companies maintain favorable income statement profiles, but Datadog’s rapid growth contrasts with Autodesk’s more mature but stable profitability.
Financial Ratios Comparison
Below is a comparative overview of key financial ratios for Autodesk, Inc. (ADSK) and Datadog, Inc. (DDOG) based on their most recent fiscal year data.
| Ratios | Autodesk, Inc. (ADSK) FY 2025 | Datadog, Inc. (DDOG) FY 2024 |
|---|---|---|
| ROE | 42.4% | 6.8% |
| ROIC | 18.0% | 1.1% |
| P/E | 60.2 | 261.4 |
| P/B | 25.5 | 17.7 |
| Current Ratio | 0.68 | 2.64 |
| Quick Ratio | 0.68 | 2.64 |
| D/E (Debt-to-Equity) | 0.98 | 0.68 |
| Debt-to-Assets | 23.6% | 31.8% |
| Interest Coverage | 0 | 7.7 |
| Asset Turnover | 0.57 | 0.46 |
| Fixed Asset Turnover | 21.4 | 6.7 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Autodesk, Inc.
Autodesk shows strong profitability with a net margin of 18.14% and a return on equity (ROE) of 42.43%, both favorable indicators. However, valuation ratios like P/E at 60.2 and P/B at 25.54 are high and considered unfavorable. Liquidity ratios are weak with a current ratio of 0.68, suggesting potential short-term solvency concerns. The company does not pay dividends, likely reinvesting earnings to support growth and R&D.
Datadog, Inc.
Datadog exhibits moderate profitability with a net margin of 6.85% but weak returns, as ROE stands at 6.77% and return on invested capital (ROIC) at 1.07%, both unfavorable. Valuation multiples are very high, including a P/E ratio of 261.42, pointing to overvaluation risks. Liquidity ratios are strong, with a current ratio of 2.64. Datadog also pays no dividends, reflecting a focus on reinvestment and expansion.
Which one has the best ratios?
Autodesk’s ratios present a more balanced profile with higher profitability and returns despite weaker liquidity and elevated valuation metrics. Datadog shows stronger liquidity but weaker profitability and higher valuation multiples. Overall, Autodesk’s ratios appear more favorable, while Datadog’s profile is slightly unfavorable due to its lower returns and stretched valuations.
Strategic Positioning
This section compares the strategic positioning of Autodesk, Inc. and Datadog, Inc., including market position, key segments, and exposure to technological disruption:
Autodesk, Inc.
- Established market leader in software applications with strong NASDAQ presence; faces competitive pressure from software peers.
- Diversified revenue streams: Architecture, Engineering & Construction, AutoCAD family, Manufacturing, Media & Entertainment.
- Operates in traditional and cloud software segments; exposure to cloud technology disruption through SaaS offerings.
Datadog, Inc.
- Growing software application provider with significant market cap; competes in cloud monitoring and analytics.
- Focused on cloud-based monitoring and analytics platform targeting developers and IT operations.
- Highly exposed to cloud technology disruption; platform integrates infrastructure and security monitoring.
Autodesk, Inc. vs Datadog, Inc. Positioning
Autodesk follows a diversified approach across multiple professional design and engineering segments, offering resilience but complexity. Datadog concentrates on cloud monitoring SaaS, enabling focused innovation but higher dependency on cloud adoption trends.
Which has the best competitive advantage?
Autodesk demonstrates a very favorable moat with growing ROIC above WACC, indicating durable competitive advantage. Datadog shows slightly unfavorable moat status despite growing profitability, reflecting ongoing value destruction and less stable competitive positioning.
Stock Comparison
The stock price movements of Autodesk, Inc. (ADSK) and Datadog, Inc. (DDOG) over the past year reveal contrasting trends, with ADSK showing moderate gains and DDOG experiencing notable declines, accompanied by varying trading volumes and buyer-seller dynamics.
Trend Analysis
Autodesk, Inc. exhibited a bullish trend over the past 12 months with a 3.3% price increase, though the trend shows deceleration. The stock ranged between 201.6 and 326.37, with high volatility (std deviation 29.87). Recent months saw a bearish correction of -11.83%.
Datadog, Inc. showed a bearish trend over the last year with an 8.1% decline and decelerating momentum. Price fluctuated from 87.93 to 191.24 with moderate volatility (std deviation 18.63). The recent period worsened with a -26.9% drop and increased selling pressure.
Comparing both, Autodesk delivered the highest market performance over the past year, showing resilience despite recent declines, while Datadog faced sustained downward pressure and stronger seller dominance.
Target Prices
Analysts show a generally optimistic consensus on target prices for Autodesk, Inc. and Datadog, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Autodesk, Inc. | 400 | 343 | 373 |
| Datadog, Inc. | 215 | 105 | 177.67 |
Autodesk’s consensus target price is substantially above its current price of 265.69 USD, suggesting upside potential. Datadog’s consensus target also exceeds its current price of 119.02 USD, indicating positive analyst expectations despite wider target ranges.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Autodesk, Inc. (ADSK) and Datadog, Inc. (DDOG):
Rating Comparison
ADSK Rating
- Rating: B- indicating a very favorable overall rating.
- Discounted Cash Flow Score: Moderate score of 3, reflecting average valuation.
- ROE Score: Very favorable top score of 5, showing strong profit generation.
- ROA Score: Favorable score of 4, showing good asset utilization.
- Debt To Equity Score: Very unfavorable score of 1, indicating high financial risk.
- Overall Score: Moderate score of 3, reflecting average overall financial health.
DDOG Rating
- Rating: C+ also indicating a very favorable overall rating.
- Discounted Cash Flow Score: Favorable score of 4, suggesting better valuation.
- ROE Score: Moderate score of 2, indicating lower efficiency in profit use.
- ROA Score: Moderate score of 3, showing average asset utilization.
- Debt To Equity Score: Moderate score of 2, indicating moderate financial risk.
- Overall Score: Moderate score of 2, reflecting slightly weaker financial health.
Which one is the best rated?
Based strictly on the provided data, Autodesk holds a better overall rating (B-) and higher ROE and ROA scores, but carries higher financial risk with a poor debt-to-equity score. Datadog has a lower overall rating (C+) but better discounted cash flow and debt-to-equity scores.
Scores Comparison
The comparison of Autodesk, Inc. and Datadog, Inc. scores is as follows:
Autodesk Scores
- Altman Z-Score: 5.05, indicating a safe zone status
- Piotroski Score: 8, classified as very strong
Datadog Scores
- Altman Z-Score: 11.37, indicating a safe zone status
- Piotroski Score: 6, classified as average
Which company has the best scores?
Datadog has a higher Altman Z-Score, suggesting stronger bankruptcy safety, while Autodesk has a higher Piotroski Score, indicating stronger financial health. Each excels in different scores based on the data provided.
Grades Comparison
Here is a comparison of the recent grades awarded to Autodesk, Inc. and Datadog, Inc. by reputable grading companies:
Autodesk, Inc. Grades
The following table summarizes Autodesk’s recent stock grades from major financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2025-11-26 |
| Wells Fargo | Maintain | Overweight | 2025-11-26 |
| Deutsche Bank | Upgrade | Buy | 2025-11-26 |
| B of A Securities | Maintain | Neutral | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-26 |
| Macquarie | Maintain | Outperform | 2025-11-26 |
| BMO Capital | Maintain | Market Perform | 2025-11-26 |
| Baird | Maintain | Outperform | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-24 |
| Baird | Maintain | Outperform | 2025-11-18 |
Autodesk’s grades show a generally positive trend, with multiple firms maintaining buy or outperform ratings and one upgrade from hold to buy.
Datadog, Inc. Grades
Below is a table listing Datadog’s recent stock grades from established rating agencies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2026-01-12 |
| Keybanc | Maintain | Overweight | 2026-01-12 |
| Morgan Stanley | Upgrade | Overweight | 2026-01-12 |
| Truist Securities | Maintain | Hold | 2026-01-07 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Jefferies | Maintain | Buy | 2026-01-05 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-11-12 |
| Truist Securities | Maintain | Hold | 2025-11-07 |
| DA Davidson | Maintain | Buy | 2025-11-07 |
Datadog’s ratings indicate a strong buy-side momentum with multiple buy and overweight ratings, including an upgrade to overweight by Morgan Stanley.
Which company has the best grades?
Both Autodesk and Datadog have received predominantly buy and overweight grades from reputable firms, with recent upgrades signaling confidence in their outlooks. Datadog edges slightly ahead due to a higher concentration of overweight ratings. Investors may view this as an indication of stronger market sentiment towards Datadog’s growth prospects relative to Autodesk.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Autodesk, Inc. (ADSK) and Datadog, Inc. (DDOG) based on the most recent financial and operational data.
| Criterion | Autodesk, Inc. (ADSK) | Datadog, Inc. (DDOG) |
|---|---|---|
| Diversification | Highly diversified across Architecture, Manufacturing, AutoCAD, and Media segments, reducing sector risk. | Focused on cloud monitoring and analytics, less diversified. |
| Profitability | Strong profitability with 18.14% net margin and 42.43% ROE; consistently creating value. | Lower profitability with 6.85% net margin and 6.77% ROE; currently shedding value. |
| Innovation | Continuous growth in ROIC (+15.4%) indicates durable competitive advantage and innovation. | Rapidly improving ROIC (+224%) but still below cost of capital, showing early-stage innovation gains. |
| Global presence | Large global footprint supported by diversified product lines serving multiple industries. | Growing global presence but more niche market focus in IT/cloud sector. |
| Market Share | Strong in CAD software with substantial market share in multiple verticals. | Emerging market presence in cloud monitoring, smaller market share compared to incumbents. |
Key takeaways: Autodesk shows a robust and diversified business model with strong profitability and a durable competitive moat. Datadog is growing rapidly with improving profitability but remains less diversified and currently value-destructive, warranting cautious consideration.
Risk Analysis
Below is a comparative table outlining key risk metrics for Autodesk, Inc. (ADSK) and Datadog, Inc. (DDOG) as of the most recent fiscal years:
| Metric | Autodesk, Inc. (ADSK) | Datadog, Inc. (DDOG) |
|---|---|---|
| Market Risk (Beta) | 1.47 (Higher volatility) | 1.26 (Moderate volatility) |
| Debt Level (Debt/Equity) | 0.98 (Neutral) | 0.68 (Moderate risk) |
| Regulatory Risk | Moderate (US tech regulations) | Moderate (Data privacy, security laws) |
| Operational Risk | Moderate (Product complexity, sector competition) | Moderate (Cloud infrastructure dependence) |
| Environmental Risk | Low (Software sector, limited direct impact) | Low (Cloud software, limited direct impact) |
| Geopolitical Risk | Moderate (US-centric, global customers) | Moderate (US base, international exposure) |
The most significant risks for both companies center around market volatility given their betas above 1, indicating sensitivity to market swings. Autodesk faces pressure from high valuation multiples and liquidity constraints, while Datadog contends with elevated P/E ratios and competitive cloud service dynamics. Both maintain moderate debt, which is manageable but warrants monitoring. Regulatory and geopolitical risks remain moderate, reflecting their US headquarters and global reach. Overall, Autodesk’s financial strength is slightly more robust, but valuation risks are notable for both.
Which Stock to Choose?
Autodesk, Inc. (ADSK) shows favorable income evolution with 12.7% revenue growth last year and strong profitability, including an 18.14% net margin. Its financial ratios are balanced with a 42.43% ROE and moderate debt. The company holds a very favorable B- rating.
Datadog, Inc. (DDOG) exhibits robust revenue growth of 26.12% last year and improving profitability, though with lower margins at 6.85%. Its financial ratios appear slightly unfavorable due to modest ROE and high valuation multiples. The firm has a very favorable C+ rating but with moderate financial stability.
Investors focused on durable value creation might view Autodesk’s strong moat and consistent profitability as favorable, while those favoring higher growth potential and recent income acceleration could find Datadog’s profile more compelling despite its financial challenges. The choice could depend on the investor’s risk tolerance and strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Autodesk, Inc. and Datadog, Inc. to enhance your investment decisions:
