In today’s fast-evolving tech landscape, CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) stand out as leaders in their respective fields. Both companies operate within the software industry, focusing on cybersecurity and application monitoring, respectively. Their innovative approaches to cloud-based solutions and their shared market overlap make them intriguing subjects for comparison. In this article, we’ll explore which of these two companies presents a more compelling opportunity for investors like you.
Table of contents
Company Overview
CrowdStrike Overview
CrowdStrike Holdings, Inc. is a leader in cybersecurity, providing cloud-delivered protection for endpoints and cloud workloads. Founded in 2011 and headquartered in Austin, Texas, the company’s mission is to stop breaches with its innovative Falcon platform, which offers a range of services including threat intelligence, managed security, and identity protection. With a market cap of approximately $121.55B, CrowdStrike serves a global clientele, relying on a subscription-based model to deliver its cutting-edge solutions. The company’s proactive approach to cybersecurity positions it as a crucial partner for organizations looking to safeguard their digital assets in an increasingly hostile cyber environment.
Datadog Overview
Datadog, Inc. specializes in monitoring and analytics for cloud applications, catering to developers and IT operations teams. Established in 2010 and headquartered in New York City, Datadog’s mission is to provide real-time observability across the entire technology stack. Its comprehensive SaaS platform integrates various monitoring capabilities, including application performance, log management, and security. With a market cap of roughly $55.25B, Datadog has carved out a significant niche in the software application industry, helping organizations seamlessly manage their cloud infrastructures and enhance operational efficiency.
Key Similarities and Differences
Both CrowdStrike and Datadog operate in the technology sector and provide cloud-based solutions, but their focus areas differ significantly. CrowdStrike emphasizes cybersecurity and endpoint protection, while Datadog concentrates on performance monitoring and analytics for cloud environments. This distinction highlights their unique value propositions within the broader technology landscape.
Income Statement Comparison
The following table provides a comparative overview of the most recent income statements for CrowdStrike Holdings, Inc. and Datadog, Inc., highlighting key financial metrics.
| Metric | CrowdStrike (CRWD) | Datadog (DDOG) |
|---|---|---|
| Revenue | 3.95B | 2.68B |
| EBITDA | 294.8M | 318.0M |
| EBIT | 80.8M | 211.0M |
| Net Income | -19.3M | 183.7M |
| EPS | -0.08 | 0.55 |
Interpretation of Income Statement
In the most recent fiscal year, CrowdStrike experienced a significant revenue increase to 3.95B, up from 3.06B in the previous year, yet it reported a net loss of 19.3M, indicating ongoing challenges in profitability. In contrast, Datadog showed strong performance with revenue growth to 2.68B and a notable net income of 183.7M, reflecting improved operational efficiency. The contrasting trends highlight that while CrowdStrike is expanding its top line, it struggles with expenses, whereas Datadog has successfully converted revenue into profit, showcasing superior margin management.
Financial Ratios Comparison
The following table presents a comparative analysis of key 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 | 261.42 |
| P/B | 29.71 | 17.70 |
| Current Ratio | 1.67 | 2.64 |
| Quick Ratio | 1.67 | 2.64 |
| D/E | 0.24 | 0.68 |
| Debt-to-Assets | 9.07% | 31.84% |
| 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
In this comparison, CRWD faces significant challenges, notably reflected in its negative ROE and P/E ratio. Although its current and quick ratios indicate reasonable liquidity, the interest coverage ratio also raises concerns due to being negative. Conversely, DDOG demonstrates stronger profitability and solvency metrics, with a positive ROE and manageable debt levels. However, both companies show no dividends, which could be a consideration for income-focused investors.
Dividend and Shareholder Returns
Both CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) do not pay dividends. This is largely due to their reinvestment strategies aimed at fueling growth during their high-growth phases. Both companies prioritize R&D and acquisitions to enhance their competitive edges, which ultimately aligns with long-term shareholder value creation. Notably, both companies actively engage in share buyback programs, indicating a commitment to returning value to shareholders. This approach may support sustainable long-term value creation if managed prudently.
Strategic Positioning
CrowdStrike (CRWD) commands a significant market share in the cloud security sector, leveraging its Falcon platform for comprehensive endpoint protection. With a market cap of approximately $122B, it faces competitive pressure from Datadog (DDOG), which focuses on monitoring and analytics in cloud environments. Datadog, valued at around $55B, emphasizes integration and real-time observability. Both companies must navigate technological disruptions and increasing demand for cybersecurity solutions as they solidify their positions in the evolving market landscape.
Stock Comparison
In the past year, both CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) have demonstrated significant price movements, reflecting the dynamic trading environment in which these companies operate. The analysis below provides insights into their respective stock performances and recent trends.
Trend Analysis
CrowdStrike Holdings, Inc. (CRWD)
Over the past year, CRWD has experienced a substantial price change of +92.18%, indicating a bullish trend. The stock has shown acceleration in its upward movement, with notable highs reaching 543.01 and lows at 217.89. The recent trend analysis from September 7, 2025, to November 23, 2025, reveals a price increase of +17.49%, accompanied by a standard deviation of 37.66, suggesting some volatility in the recent trading period.
Datadog, Inc. (DDOG)
Similarly, DDOG has recorded a price change of +29.8% over the past year, also reflecting a bullish trend. This stock has maintained acceleration, with highs at 191.24 and lows at 87.93. Analyzing the recent trend from September 7, 2025, to November 23, 2025, DDOG shows a price increase of +15.78% and a standard deviation of 17.14, indicating a relatively stable performance compared to CRWD.
In summary, both CRWD and DDOG display strong bullish trends, with CRWD experiencing a higher percentage change and notable volatility, while DDOG maintains a solid performance with less fluctuation.
Analyst Opinions
Recent recommendations for CrowdStrike Holdings, Inc. (CRWD) reflect a cautious stance, with a rating of C- indicating a hold. Analysts express concerns about its low return on equity and asset scores, suggesting potential challenges ahead. In contrast, Datadog, Inc. (DDOG) has garnered a C+ rating, with analysts highlighting stronger fundamentals and a favorable outlook for growth. The consensus for CRWD leans towards hold, while DDOG shows a slightly positive sentiment, making it a potential buy for growth-focused investors.
Stock Grades
Recent evaluations provide insights into the current market sentiment for CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG). Here’s a look at their stock grades from recognized grading companies.
CrowdStrike Holdings, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2025-11-21 |
| Truist Securities | maintain | Buy | 2025-11-18 |
| Rosenblatt | maintain | Buy | 2025-11-18 |
| Mizuho | maintain | Neutral | 2025-11-17 |
| Stifel | maintain | Buy | 2025-11-17 |
| Barclays | maintain | Overweight | 2025-11-14 |
| Baird | maintain | Neutral | 2025-11-14 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-13 |
| BTIG | maintain | Buy | 2025-11-04 |
| Oppenheimer | maintain | Outperform | 2025-10-17 |
Datadog, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-12 |
| Goldman Sachs | maintain | Buy | 2025-11-07 |
| Rosenblatt | maintain | Buy | 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 |
| Wells Fargo | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-07 |
Overall, both companies maintain strong positions in their respective sectors, with CrowdStrike receiving consistent “Buy” and “Outperform” ratings, while Datadog shows a mix of “Buy” and an upgrade to “Overweight.” This indicates a favorable market outlook for both stocks, but investors should remain cautious and consider their risk tolerance before making any decisions.
Target Prices
The consensus target prices for the following companies indicate optimistic projections from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 430 | 541.57 |
| Datadog, Inc. | 215 | 105 | 179.25 |
Analysts expect CrowdStrike’s stock to reach a consensus price of $541.57, while Datadog’s consensus stands at $179.25. Given their current prices of $490.67 and $157.55 respectively, both stocks have potential upside based on analyst expectations.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG) based on the most recent data.
| Criterion | CrowdStrike (CRWD) | Datadog (DDOG) |
|---|---|---|
| Diversification | Limited offerings, focusing on cybersecurity | Diverse platform with monitoring and analytics |
| Profitability | Negative net profit margin (-0.49%) | Positive net profit margin (6.85%) |
| Innovation | Strong in cybersecurity innovations | Continual updates in monitoring features |
| Global presence | Operates globally | Global reach across various cloud services |
| Market Share | Growing but competitive | Strong foothold in application monitoring |
| Debt level | Low debt-to-equity ratio (0.24) | Moderate debt-to-equity ratio (0.68) |
Key takeaways highlight that CrowdStrike specializes in cybersecurity with limited diversification, while Datadog offers a broader range of services and has achieved positive profitability. Both companies operate globally, yet their market strategies and financial health diverge significantly.
Risk Analysis
In this section, I present a comparative analysis of key risks associated with CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG).
| Metric | CrowdStrike Holdings, Inc. | Datadog, Inc. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face market risks due to the competitive landscape in the tech sector. However, CrowdStrike’s operational risks are heightened by its focus on cybersecurity, with data breaches being a critical concern. As of 2025, the ongoing regulatory scrutiny in the tech industry also poses challenges for both firms.
Which one to choose?
When comparing CrowdStrike Holdings, Inc. (CRWD) and Datadog, Inc. (DDOG), both companies exhibit strong growth potential but differ significantly in their fundamentals. CrowdStrike shows a higher gross profit margin of 75% compared to Datadog’s 80%, yet its net income remains negative, indicating current operational challenges. Datadog, on the other hand, has a current ratio of 3.17, suggesting better short-term liquidity and a more favorable profitability outlook with a net income of $184M in 2024.
Analyst opinions suggest a cautious view on both stocks, with CRWD rated C- and DDOG rated C+. Given the current market conditions, investors seeking stability may favor Datadog due to its positive earnings and stronger balance sheet, while those focused on high growth potential could lean towards CrowdStrike, accepting the associated risks of volatility and operational losses.
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:
