In the fast-evolving tech landscape, CrowdStrike Holdings, Inc. and Datadog, Inc. stand out as leaders in cloud-based software solutions. CrowdStrike specializes in cybersecurity infrastructure, while Datadog focuses on application monitoring and analytics. Both companies innovate aggressively, serving overlapping markets that demand real-time data protection and operational insight. This article will help you decide which of these tech giants offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between CrowdStrike and Datadog by providing an overview of these two companies and their main differences.
CrowdStrike Overview
CrowdStrike Holdings, Inc. focuses on cloud-delivered protection for endpoints, cloud workloads, identity, and data. The company offers threat intelligence, managed security services, IT operations management, and Zero Trust identity protection through its Falcon platform. Founded in 2011 and based in Austin, Texas, CrowdStrike serves a global customer base and operates in the Software – Infrastructure industry with over 10K employees.
Datadog Overview
Datadog, Inc. delivers a SaaS monitoring and analytics platform designed for developers, IT operations, and business users. Its platform integrates infrastructure monitoring, application performance, log management, and security monitoring for real-time observability of technology stacks. Headquartered in New York City since 2010, Datadog operates in the Software – Application sector with 6.5K employees, serving clients worldwide.
Key similarities and differences
Both CrowdStrike and Datadog operate in the technology sector, providing cloud-based solutions with a focus on security and monitoring. While CrowdStrike specializes in endpoint and cloud workload protection with a security emphasis, Datadog offers a broader observability platform covering infrastructure and application performance. Each company uses subscription-based models to serve enterprise clients globally but targets different niches within software services.
Income Statement Comparison
The table below compares the key income statement metrics for CrowdStrike Holdings, Inc. and Datadog, Inc. for their most recent fiscal years, providing a snapshot of their financial performance.
| Metric | CrowdStrike Holdings, Inc. | Datadog, Inc. |
|---|---|---|
| Market Cap | 113B | 47B |
| Revenue | 3.95B | 2.68B |
| EBITDA | 295M | 318M |
| EBIT | 81M | 211M |
| Net Income | -19M | 184M |
| EPS | -0.08 | 0.55 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
CrowdStrike Holdings, Inc.
CrowdStrike’s revenue rose substantially from 874M in 2021 to 3.95B in 2025, with net income improving overall despite a recent dip to -19M in 2025. Gross margins remained strong near 75%, while EBIT margins stayed flat around 2%. The latest year showed robust revenue growth of 29.4% but declining EBIT and net margins, suggesting rising expenses impacting profitability.
Datadog, Inc.
Datadog experienced impressive growth, with revenue increasing from 603M in 2020 to 2.68B in 2024, and net income turning positive at 184M in 2024 after prior losses. Gross margins improved to over 80%, and EBIT margins advanced to about 7.9%. The most recent year marked strong gains in revenue, EBIT, and net margin, reflecting enhanced operational efficiency and profitability.
Which one has the stronger fundamentals?
Datadog demonstrates stronger fundamentals with consistent revenue and net income growth, higher profitability margins, and favorable expense management. CrowdStrike shows solid revenue expansion but faces margin pressure and a recent net loss. Overall, Datadog’s income statement reflects more robust profitability improvements and margin stability over the periods analyzed.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) for their most recent fiscal years, providing insight into their profitability, liquidity, leverage, and operational efficiency.
| Ratios | CrowdStrike Holdings, Inc. (2025) | Datadog, Inc. (2024) |
|---|---|---|
| ROE | -0.59% | 6.77% |
| ROIC | 0.70% | 1.07% |
| P/E | -5055.7 | 261.4 |
| P/B | 29.71 | 17.70 |
| Current Ratio | 1.67 | 2.64 |
| Quick Ratio | 1.67 | 2.64 |
| D/E (Debt to Equity) | 0.24 | 0.68 |
| Debt-to-Assets | 9.07% | 31.8% |
| Interest Coverage | -4.58 | 7.68 |
| Asset Turnover | 0.45 | 0.46 |
| Fixed Asset Turnover | 4.76 | 6.72 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
CrowdStrike Holdings, Inc.
CrowdStrike shows a balanced mix of favorable and unfavorable ratios, with a current ratio of 1.67 indicating good short-term liquidity and a low debt-to-assets ratio of 9.07% supporting financial stability. However, negative returns on equity (-0.59%) and net margin (-0.49%) raise concerns about profitability. The company does not pay dividends, likely reflecting a reinvestment strategy focused on growth and innovation.
Datadog, Inc.
Datadog has strong liquidity with a current ratio of 2.64 and excellent interest coverage at 29.85, signaling solid debt servicing capacity. Yet, its return on equity is modest at 6.77%, and valuation multiples such as a P/E of 261.42 suggest high expectations with potential risk. Datadog also does not pay dividends, possibly prioritizing reinvestment and R&D to fuel expansion.
Which one has the best ratios?
Comparatively, CrowdStrike holds a neutral stance with more favorable liquidity and leverage ratios, while Datadog’s liquidity strength is offset by higher debt levels and stretched valuation. Both companies show weaknesses in profitability and no dividend distributions, but CrowdStrike’s lower debt burden and balanced ratios may offer a more stable financial profile.
Strategic Positioning
This section compares the strategic positioning of CrowdStrike and Datadog regarding market position, key segments, and exposure to technological disruption:
CrowdStrike
- Leading cloud-delivered endpoint and cloud workload security with direct sales and channel partners.
- Key drivers are subscriptions to Falcon platform and cloud modules; professional services are minor.
- Operates in software infrastructure sector with ongoing innovation in threat intelligence and Zero Trust.
Datadog
- Focused on cloud monitoring and analytics platform for IT and developers with SaaS model.
- Business driven by integrated monitoring, performance, security, and observability SaaS offerings.
- Positioned in software application sector with emphasis on real-time observability and automation.
CrowdStrike vs Datadog Positioning
CrowdStrike’s approach centers on diversified cloud security solutions with strong subscription revenue, while Datadog concentrates on a unified SaaS monitoring platform. CrowdStrike benefits from broad endpoint and cloud coverage; Datadog excels in integrated observability and automation features.
Which has the best competitive advantage?
Both companies show slightly unfavorable MOATs, shedding value but with growing ROIC trends. Neither currently generates excess returns above capital costs, indicating limited sustained competitive advantage based on available data.
Stock Comparison
The stock price movements of CrowdStrike Holdings, Inc. and Datadog, Inc. over the past 12 months reveal contrasting trends, with CrowdStrike showing a strong overall gain despite recent declines, while Datadog’s price has been largely flat to slightly down, reflecting differing trading dynamics.
Trend Analysis
CrowdStrike Holdings, Inc. experienced a bullish trend over the past 12 months with a 37.72% price increase, though this momentum decelerated. The stock reached a high of 543.01 and a low of 217.89, with recent weeks showing a short-term decline of 6.41%.
Datadog, Inc. showed a bearish trend overall, with a slight price decrease of 0.85% in the past year and decelerating movement. Its price ranged between 87.93 and 191.24, with a sharper recent decline of 12.49%.
Comparing the two, CrowdStrike delivered the highest market performance with a significant positive return, while Datadog’s stock was nearly flat with a minor negative return over the same period.
Target Prices
The current analyst consensus presents optimistic target prices for both CrowdStrike Holdings, Inc. and Datadog, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 353 | 548.07 |
| Datadog, Inc. | 215 | 105 | 180.87 |
Analysts expect CrowdStrike’s stock to appreciate significantly from its current price of $453.58, while Datadog’s consensus target also suggests a strong upside from $133.77. Both stocks show attractive potential according to the latest targets.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for CrowdStrike Holdings, Inc. and Datadog, Inc.:
Rating Comparison
CrowdStrike Rating
- Rating: C, considered Very Favorable
- Discounted Cash Flow Score: 4, favorable valuation metric
- ROE Score: 1, very unfavorable efficiency in equity use
- ROA Score: 1, very unfavorable asset utilization
- Debt To Equity Score: 3, moderate financial risk
- Overall Score: 2, moderate overall financial standing
Datadog Rating
- Rating: C+, considered Very Favorable
- Discounted Cash Flow Score: 4, favorable valuation metric
- ROE Score: 2, moderate efficiency in equity use
- ROA Score: 3, moderate asset utilization
- Debt To Equity Score: 2, moderate financial risk, slightly better
- Overall Score: 2, moderate overall financial standing
Which one is the best rated?
Datadog holds a slightly higher overall rating (C+) than CrowdStrike (C). Datadog also scores better on ROE, ROA, and debt-to-equity, indicating moderately stronger financial efficiency and stability based on the data provided.
Scores Comparison
Here is a comparison of the financial scores for CrowdStrike Holdings, Inc. and Datadog, Inc.:
CRWD Scores
- Altman Z-Score: 13.54, indicating a safe zone status.
- Piotroski Score: 4, classified as average financial strength.
DDOG Scores
- Altman Z-Score: 12.36, also in the safe zone range.
- Piotroski Score: 6, reflecting average financial strength.
Which company has the best scores?
Both CRWD and DDOG have Altman Z-Scores well within the safe zone, indicating low bankruptcy risk. DDOG’s Piotroski Score is higher at 6 compared to CRWD’s 4, suggesting relatively stronger financial health based on that metric.
Grades Comparison
The following section presents the recent grades assigned to CrowdStrike Holdings, Inc. and Datadog, Inc. by reputable grading companies:
CrowdStrike Holdings, Inc. Grades
This table summarizes the latest grades given by recognized financial institutions for CrowdStrike Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-03 |
| Macquarie | Maintain | Neutral | 2025-12-03 |
| DA Davidson | Maintain | Buy | 2025-12-03 |
| Citizens | Maintain | Market Outperform | 2025-12-03 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-03 |
Overall, CrowdStrike’s grades show a positive trend with strong buy and outperform ratings from multiple well-known firms, indicating a generally favorable market outlook.
Datadog, Inc. Grades
Presented here are the most recent grades assigned by established financial institutions for Datadog, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2025-11-12 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-07 |
| Rosenblatt | Maintain | Buy | 2025-11-07 |
| RBC Capital | Maintain | Outperform | 2025-11-07 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
| UBS | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-11-07 |
| Goldman Sachs | Maintain | Buy | 2025-11-07 |
| Truist Securities | Maintain | Hold | 2025-11-07 |
Datadog’s ratings are predominantly positive, with several buy and outperform grades, though a single hold rating adds some caution.
Which company has the best grades?
Both companies have received mostly favorable grades, but CrowdStrike holds a slight edge with multiple buy and outperform ratings, including recent upgrades. This could reflect a marginally stronger consensus among analysts, potentially impacting investor confidence differently for each stock.
Strengths and Weaknesses
Here is a comparison of key strengths and weaknesses for CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) based on the latest available data.
| Criterion | CrowdStrike Holdings, Inc. (CRWD) | Datadog, Inc. (DDOG) |
|---|---|---|
| Diversification | Focused mainly on cybersecurity subscription services with growing professional services segment | Primarily a cloud monitoring platform, less diversified product range |
| Profitability | Negative net margin (-0.49%) and ROIC (0.7%), shedding value but improving ROIC trend | Positive net margin (6.85%) but still unfavorable ROIC (1.07%), also shedding value |
| Innovation | Strong innovation in cybersecurity with consistent revenue growth in subscriptions | Significant innovation in cloud monitoring, showing rapid ROIC growth |
| Global presence | Expanding global footprint in cybersecurity market | Global cloud services presence, but less diversified geographically |
| Market Share | Leading position in endpoint security with subscription dominance | Growing share in cloud monitoring but faces intense competition |
Key takeaways: Both companies are currently shedding value with ROIC below WACC, indicating caution. However, both show improving profitability trends and strong innovation, making them interesting for investors who can tolerate moderate risk and seek growth in cybersecurity and cloud services.
Risk Analysis
The following table summarizes key risks for CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) based on their latest financial and market data.
| Metric | CrowdStrike Holdings, Inc. (CRWD) | Datadog, Inc. (DDOG) |
|---|---|---|
| Market Risk | Beta 1.09, volatile tech sector | Beta 1.23, tech sector volatility |
| Debt level | Low debt-to-equity 0.24 (favorable) | Moderate debt-to-equity 0.68 (neutral) |
| Regulatory Risk | Moderate, cybersecurity regulations | Moderate, cloud data privacy rules |
| Operational Risk | Medium, reliance on subscription sales | Medium, SaaS platform complexity |
| Environmental Risk | Low, primarily software business | Low, primarily software business |
| Geopolitical Risk | Moderate, global customer base | Moderate, international operations |
The most impactful risks are market volatility and operational challenges in fast-evolving tech environments. CrowdStrike’s low debt reduces financial risk, while Datadog’s higher leverage calls for cautious monitoring. Both face regulatory scrutiny related to data security and privacy amid global geopolitical tensions.
Which Stock to Choose?
CrowdStrike Holdings, Inc. (CRWD) shows strong revenue growth of 29.39% in 2025 with a favorable gross margin of 74.92%, though profitability ratios like net margin (-0.49%) and ROE (-0.59%) remain unfavorable. Its debt levels are low and rated favorably, with a neutral overall financial ratios assessment and a very favorable rating.
Datadog, Inc. (DDOG) presents a favorable income statement with a 26.12% revenue growth and a 6.85% net margin in 2024. Despite moderate ROE (6.77%) and ROIC (1.07%) ratings, it carries higher debt levels rated neutral. Financial ratios are slightly unfavorable overall, yet it maintains a very favorable rating.
Investors prioritizing growth might find CrowdStrike’s strong revenue expansion and improving profitability appealing, while those valuing stable profitability and a stronger current ratio may see Datadog as more suitable. Both companies show value destruction with growing ROIC trends, suggesting improving but still challenged profitability.
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 CrowdStrike Holdings, Inc. and Datadog, Inc. to enhance your investment decisions:
