In today’s rapidly evolving tech landscape, cybersecurity and monitoring solutions are more crucial than ever. This article compares CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG), two key players in the software sector that cater to the growing demand for security and observability. Both companies leverage innovative strategies to capture market share, making them prime candidates for investor consideration. Join me as we explore which of these firms offers the most compelling opportunity for your investment portfolio.
Table of contents
Company Overview
CrowdStrike Holdings, Inc. Overview
CrowdStrike Holdings, Inc. is a leader in cloud-delivered cybersecurity solutions, primarily focusing on endpoint protection and cloud workload security. Founded in 2011 and based in Austin, Texas, the company offers a comprehensive suite of services under its Falcon platform, including threat intelligence, managed security services, and Zero Trust identity protection. With a market capitalization of approximately $129B, CrowdStrike emphasizes a subscription-based business model, catering to a global clientele through both direct sales and a network of channel partners. The firm has positioned itself as a critical player in the cybersecurity landscape, driven by the increasing demand for robust protection against evolving cyber threats.
Datadog, Inc. Overview
Datadog, Inc. provides a unified monitoring and analytics platform designed to enhance visibility across cloud applications and infrastructure. Established in 2010 and headquartered in New York City, Datadog’s Software-as-a-Service (SaaS) platform integrates real-time observability across various technology stacks, including application performance monitoring and security monitoring. With a market cap of about $53B, Datadog serves a diverse range of customers, leveraging its capabilities to deliver insights that improve operational efficiency and incident management. The company’s innovative approach to cloud monitoring has made it a vital resource for developers and IT operations teams worldwide.
Key similarities and differences
Both CrowdStrike and Datadog operate within the technology sector, focusing on cloud-based solutions. However, their core competencies differ: CrowdStrike specializes in cybersecurity while Datadog emphasizes monitoring and analytics. Their subscription-based models cater to distinct needs within the broader technology landscape, showcasing their specialized approaches to enhancing security and operational efficiency, respectively.
Income Statement Comparison
In this section, I present a comparative view of the most recent income statements for CrowdStrike Holdings, Inc. and Datadog, Inc., providing key metrics that can guide your investment decisions.
| Metric | CrowdStrike (CRWD) | Datadog (DDOG) |
|---|---|---|
| Market Cap | 129.14B | 52.83B |
| Revenue | 3.95B | 2.68B |
| EBITDA | 294.80M | 317.99M |
| EBIT | 80.85M | 211.01M |
| Net Income | -19.27M | 183.75M |
| EPS | -0.08 | 0.55 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
CrowdStrike’s revenue increased significantly from the previous year, showing growth potential, yet it has reported a net loss for the current fiscal year, indicating challenges in profitability. In contrast, Datadog has demonstrated strong revenue growth and profitability, with a net income of 183.75M, suggesting effective cost management and a solid market position. The EBITDA margin for Datadog is higher, reflecting better operational efficiency compared to CrowdStrike. Overall, while both companies are in the tech sector with robust growth prospects, Datadog’s performance appears more stable and favorable for investors seeking reliable returns.
Financial Ratios Comparison
The following table provides a comparative overview of the most recent revenue and financial ratios for CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG).
| Metric | CRWD | DDOG |
|---|---|---|
| ROE | -0.59% | 6.77% |
| ROIC | 0.70% | 1.07% |
| P/E | -5055.66 | 809.82 |
| P/B | 29.71 | 19.42 |
| Current Ratio | 1.67 | 3.17 |
| Quick Ratio | 1.67 | 3.17 |
| D/E | 0.24 | 0.68 |
| Debt-to-Assets | 0.09 | 0.23 |
| 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 Financial Ratios
When interpreting the financial ratios, CRWD’s negative ROE and P/E indicate significant challenges in profitability and valuation, while DDOG demonstrates a healthier return on equity and manageable debt levels. However, DDOG’s higher P/E ratio suggests it may be overvalued relative to its earnings. Both companies lack dividend payouts, reflecting a focus on growth reinvestment. Investors should weigh these factors against their risk tolerance and investment strategy.
Dividend and Shareholder Returns
Neither CrowdStrike Holdings, Inc. (CRWD) nor Datadog, Inc. (DDOG) pays dividends, reflecting their focus on reinvesting profits for growth. CRWD is in a high growth phase, despite recent net losses, while DDOG is also prioritizing R&D to enhance its product offerings. Both companies engage in share buybacks, which can support shareholder returns. However, their strategies emphasize long-term value creation over immediate cash distributions, indicating a commitment to sustainable growth.
Strategic Positioning
CrowdStrike (CRWD) holds a significant market share in the cybersecurity sector, primarily through its Falcon platform, which is critical for endpoint protection and threat intelligence. With a market cap of $129B, it faces competitive pressure from emerging technologies and established players. Meanwhile, Datadog (DDOG), valued at $53B, excels in application performance monitoring and observability, navigating a landscape marked by rapid technological advancements and increasing demand for integrated solutions. Both companies must continuously innovate to stay ahead of market disruptions.
Stock Comparison
In the ever-evolving market landscape, analyzing stock price movements over the past year reveals critical insights into trading dynamics. This week, I will focus on CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG), highlighting their notable price fluctuations and overall trends.
Trend Analysis
CrowdStrike Holdings, Inc. (CRWD) has experienced a remarkable price change of 82.75% over the past year, indicating a bullish trend. The stock has shown acceleration in its price movements, with notable highs reaching $543.01 and lows at $217.89. Recent data from September 21 to December 7, 2025, reveals a 3.04% increase, further supporting the bullish outlook. The standard deviation of 21.72 suggests a moderate level of volatility, but the overall upward trend appears strong.
Datadog, Inc. (DDOG) also reflects a positive trajectory, with a 22.5% increase over the last year, classifying it as a bullish trend as well. Similar to CRWD, DDOG’s price movements are accelerating, with a peak at $191.24 and a trough of $87.93. The recent performance from September 21 to December 7, 2025, shows an 8.54% rise, reinforcing the bullish sentiment. With a standard deviation of 15.01, DDOG exhibits lower volatility compared to CRWD, suggesting a more stable upward trend.
Both companies seem poised for continued growth, but potential investors should remain vigilant regarding market conditions and inherent risks associated with trading in these stocks.
Analyst Opinions
Recent analyst ratings indicate a mixed sentiment for the tech sector. CrowdStrike Holdings, Inc. (CRWD) received a “C” rating, with analysts citing concerns over its return on equity and assets as key weaknesses. On the other hand, Datadog, Inc. (DDOG) has a more favorable “B-” rating, supported by strong discounted cash flow metrics. Analysts believe DDOG’s solid fundamentals position it well for future growth. Overall, the consensus leans toward holding both stocks for the current year, reflecting caution amid market volatility.
Stock Grades
I’ve gathered the latest stock grades for two companies: CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG). Here’s a clear view of their current ratings:
CrowdStrike Holdings, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Buy | 2025-12-04 |
| Citigroup | maintain | Buy | 2025-12-04 |
| Needham | maintain | Buy | 2025-12-03 |
| DA Davidson | maintain | Buy | 2025-12-03 |
| BTIG | maintain | Buy | 2025-12-03 |
| Cantor Fitzgerald | maintain | Overweight | 2025-12-03 |
| Citizens | maintain | Market Outperform | 2025-12-03 |
| Scotiabank | maintain | Sector Outperform | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-12-03 |
| Rosenblatt | maintain | Buy | 2025-12-03 |
Datadog, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-12 |
| Goldman Sachs | maintain | Buy | 2025-11-07 |
| Wells Fargo | maintain | Overweight | 2025-11-07 |
| Cantor Fitzgerald | maintain | Overweight | 2025-11-07 |
| Truist Securities | maintain | Hold | 2025-11-07 |
| DA Davidson | maintain | Buy | 2025-11-07 |
| BMO Capital | maintain | Outperform | 2025-11-07 |
| Keybanc | upgrade | Overweight | 2025-11-07 |
| Canaccord Genuity | maintain | Buy | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-07 |
Overall, both companies maintain strong buy ratings from multiple respected analysts, indicating a positive sentiment in the market. Notably, Datadog has seen an upgrade from Keybanc, highlighting its improved outlook.
Target Prices
The consensus target prices for CrowdStrike and Datadog indicate positive expectations among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 353 | 545.79 |
| Datadog, Inc. | 215 | 105 | 179.25 |
Analysts expect CrowdStrike’s stock to reach a consensus of 546, significantly higher than its current price of 518.31. For Datadog, the consensus target price of 179.25 also suggests an upward potential compared to its current trading price of 150.65. Both companies show considerable room for growth according to analyst expectations.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) based on their most recent financial data.
| Criterion | CrowdStrike (CRWD) | Datadog (DDOG) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Negative margins | Positive margins |
| Innovation | High | High |
| Global presence | Strong | Strong |
| Market Share | Growing | Established |
| Debt level | Low | Moderate |
Key takeaways: While both companies exhibit strong innovation and a solid global presence, CrowdStrike currently struggles with profitability compared to Datadog, which has achieved positive margins.
Risk Analysis
The following table outlines potential risks associated with CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG):
| Metric | CRWD | DDOG |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face significant market and operational risks. For CRWD, its dependency on subscription revenue makes it vulnerable to market fluctuations, while DDOG’s rapid growth is challenged by increasing competition and regulatory scrutiny.
Which one to choose?
When comparing CrowdStrike (CRWD) and Datadog (DDOG), both companies exhibit strong fundamentals, yet they differ significantly in profitability and valuation metrics. CRWD has a gross profit margin of 74.9% and a net profit margin of -0.5%, indicating a struggle with profitability despite high revenue growth of 3.95B. In contrast, DDOG boasts a gross profit margin of 80.8% and a net profit margin of 6.8%, alongside a lower market cap of 48B. Analysts generally rate CRWD as a “C” and DDOG as a “B-“, with price targets favoring DDOG’s more favorable growth outlook.
For growth-oriented investors, DDOG may be the better option, while those seeking stability might prefer CRWD, acknowledging its larger market presence. However, both companies face competitive pressures and market valuation challenges.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of CrowdStrike Holdings, Inc. and Datadog, Inc. to enhance your investment decisions:
