In today’s fast-evolving tech landscape, Datadog, Inc. and Perfect Corp. stand out as innovative players within the software application industry. Datadog excels in cloud monitoring and analytics, serving developers and IT teams globally, while Perfect Corp. leads in AI-driven augmented reality solutions for beauty and fashion. This comparison explores their market positions and growth strategies to help you identify which company holds greater promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Datadog and Perfect Corp. by providing an overview of these two companies and their main differences.
Datadog Overview
Datadog, Inc. is a US-based company headquartered in New York City, specializing in a SaaS platform that delivers monitoring and analytics solutions. Its platform integrates infrastructure monitoring, application performance, log management, and security monitoring, offering real-time observability for developers, IT operations, and business users globally. Founded in 2010, Datadog serves a broad market with a technology stack focus and employs approximately 6,500 people.
Perfect Corp. Overview
Perfect Corp., headquartered in New Taipei City, Taiwan, provides SaaS-based AI and augmented reality solutions tailored to the beauty and fashion tech industries. Established in 2015, the company offers virtual try-on and AI-powered analysis tools across a wide range of cosmetic and fashion applications. With a workforce of 342 employees, Perfect Corp. focuses on enhancing customer experience through innovative AR and AI technologies.
Key similarities and differences
Both Datadog and Perfect Corp. operate in the technology sector and offer SaaS platforms, yet they target different markets—Datadog focuses on cloud infrastructure and IT monitoring, while Perfect Corp. specializes in AI-driven beauty and fashion tech solutions. Datadog’s business is larger in scale with a market cap exceeding 41B USD and a global presence, contrasting with Perfect Corp.’s smaller market cap of about 179M USD and a niche customer base primarily in beauty and fashion technology.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Datadog, Inc. and Perfect Corp. for the fiscal year 2024, providing insight into their recent financial performance.
| Metric | Datadog, Inc. (DDOG) | Perfect Corp. (PERF) |
|---|---|---|
| Market Cap | 41.7B | 179M |
| Revenue | 2.68B | 60.2M |
| EBITDA | 318M | -2.05M |
| EBIT | 211M | -2.84M |
| Net Income | 184M | 5.02M |
| EPS | 0.55 | 0.05 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Datadog, Inc.
Datadog’s revenue and net income showed strong growth from 2020 to 2024, with revenue rising from $603M to $2.68B and net income turning positive to $184M in 2024. Gross margins remained high and stable near 81%, while net margin improved significantly to 6.85%. The 2024 fiscal year saw accelerated growth in revenue and profitability, reflecting improved operational efficiency.
Perfect Corp.
Perfect Corp. experienced steady revenue growth from $29.9M in 2020 to $60.2M in 2024, with net income recovering to $5M in 2024 after prior losses. Gross margin was favorable near 78%, but EBIT margin remained negative at -4.72%, indicating ongoing operational challenges. The latest year showed moderate revenue growth but a decline in EBIT and net margin, signaling margin pressures.
Which one has the stronger fundamentals?
Datadog demonstrates stronger fundamentals, benefiting from robust revenue and net income growth, high gross margins, and positive operating margins. Perfect Corp. shows favorable revenue and net income trends but struggles with negative EBIT margins and margin contraction recently. Overall, Datadog’s consistent profitability and margin improvements present a more favorable income statement profile.
Financial Ratios Comparison
The table below compares key financial ratios for Datadog, Inc. and Perfect Corp. based on their most recent fiscal year data for 2024.
| Ratios | Datadog, Inc. (DDOG) | Perfect Corp. (PERF) |
|---|---|---|
| ROE | 6.77% | 3.42% |
| ROIC | 1.07% | -2.10% |
| P/E | 261.4x | 56.6x |
| P/B | 17.7x | 1.93x |
| Current Ratio | 2.64 | 5.52 |
| Quick Ratio | 2.64 | 5.52 |
| D/E (Debt-to-Equity) | 0.68 | 0.0035 |
| Debt-to-Assets | 31.8% | 0.28% |
| Interest Coverage | 7.68x | -449x |
| Asset Turnover | 0.46 | 0.33 |
| Fixed Asset Turnover | 6.72 | 57.94 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Datadog, Inc.
Datadog shows a mixed ratio profile with a favorable current and quick ratio of 2.64, indicating good short-term liquidity. However, its return on equity (6.77%) and return on invested capital (1.07%) are unfavorable, alongside a high price-to-earnings ratio of 261.42, suggesting valuation concerns. The company does not pay dividends, focusing instead on reinvestment and growth.
Perfect Corp.
Perfect Corp. presents a slightly better liquidity with a high quick ratio of 5.52 but an unfavorable current ratio, signaling potential working capital management issues. Return on equity is low at 3.42%, and return on invested capital is negative, reflecting operational challenges. Like Datadog, it does not pay dividends, likely prioritizing reinvestment and expansion.
Which one has the best ratios?
Both companies have a slightly unfavorable global ratio opinion, but Perfect Corp. holds a higher percentage of favorable ratios (35.71% vs 28.57%) and a more conservative debt profile. However, it suffers from a negative interest coverage ratio. Datadog’s stronger liquidity contrasts with its elevated valuation multiples and weaker profitability metrics.
Strategic Positioning
This section compares the strategic positioning of Datadog and Perfect Corp., including market position, key segments, and exposure to technological disruption:
Datadog, Inc.
- Strong presence in cloud monitoring with significant market capitalization and competitive pressure.
- Provides SaaS platform for IT monitoring, application performance, security, and real-time observability.
- Positioned in cloud and IT monitoring sector, facing evolving tech but no explicit disruption details provided.
Perfect Corp.
- Smaller market cap with niche focus on AI and AR beauty and fashion tech solutions.
- Offers AI and AR virtual try-on and beauty tech SaaS solutions across multiple product categories.
- Positioned in AI and AR-driven beauty tech, subject to innovation in augmented reality and AI technologies.
Datadog vs Perfect Corp. Positioning
Datadog operates a diversified SaaS platform targeting IT and cloud operations, supporting multiple monitoring functions. Perfect Corp. focuses on a concentrated niche of AI and AR beauty and fashion tech applications. Datadog’s broader market presence contrasts with Perfect’s specialized product offerings.
Which has the best competitive advantage?
Both companies are classified as slightly unfavorable in MOAT evaluation, shedding value but showing growing ROIC trends. Neither currently demonstrates a strong sustainable competitive advantage based on ROIC versus WACC analysis.
Stock Comparison
The stock price dynamics over the past 12 months reveal notable bearish trends for both Datadog, Inc. and Perfect Corp., marked by declining price trajectories and decelerating momentum amid varying volatility profiles.
Trend Analysis
Datadog, Inc. (DDOG) experienced an 8.1% price decline over the past year, indicating a bearish trend with decelerating momentum. The stock showed significant volatility with a standard deviation of 18.63, reaching a high of 191.24 and a low of 87.93.
Perfect Corp. (PERF) reported a more pronounced bearish trend with a 28.98% decrease in price over the same period. The trend also decelerated, with minimal volatility reflected by a standard deviation of 0.27, and price fluctuating between 2.7 and 1.61.
Comparing both stocks, Datadog, Inc. delivered the highest market performance despite its bearish trend, with a smaller percentage decline (-8.1%) relative to Perfect Corp.’s steeper drop (-28.98%) over the past year.
Target Prices
Analysts provide a clear consensus on target prices for Datadog, Inc. and Perfect Corp.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Datadog, Inc. | 215 | 105 | 177.67 |
| Perfect Corp. | 7 | 7 | 7 |
The target consensus for Datadog at 177.67 is significantly above its current price of 119.02, indicating expected upside potential. For Perfect Corp., the consensus target of 7 is well above its current price of 1.74, suggesting strong bullish sentiment.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Datadog, Inc. and Perfect Corp.:
Rating Comparison
DDOG Rating
- Rating: C+ with a very favorable status reflecting moderate overall financial standing.
- Discounted Cash Flow Score: 4, considered favorable, suggesting potential undervaluation.
- ROE Score: 2, moderate efficiency in generating profit from shareholders’ equity.
- ROA Score: 3, moderate effectiveness in utilizing assets to generate earnings.
- Debt To Equity Score: 2, moderate financial risk with balanced debt usage.
- Overall Score: 2, moderate overall financial standing.
PERF Rating
- Rating: A- with a very favorable status indicating strong overall financial health.
- Discounted Cash Flow Score: 5, very favorable, indicating strong future cash flow projections.
- ROE Score: 2, moderate efficiency similar to DDOG.
- ROA Score: 3, moderate asset utilization effectiveness, matching DDOG’s score.
- Debt To Equity Score: 4, favorable, indicating lower financial risk and stronger balance sheet.
- Overall Score: 4, favorable overall financial standing.
Which one is the best rated?
Based on the provided data, Perfect Corp. is better rated with a higher overall score (4 vs. 2) and superior discounted cash flow and debt-to-equity scores. Datadog shows moderate ratings throughout but scores lower overall.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for Datadog, Inc. and Perfect Corp.:
Datadog Scores
- Altman Z-Score: 11.37, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 6, reflecting an average financial strength.
Perfect Scores
- Altman Z-Score: 1.31, indicating distress zone with high bankruptcy risk.
- Piotroski Score: 6, reflecting an average financial strength.
Which company has the best scores?
Datadog shows a significantly stronger Altman Z-Score, placing it in a safe zone, compared to Perfect’s distress zone score. Both have equal Piotroski Scores, indicating similar average financial strength. Overall, Datadog’s scores suggest greater financial stability.
Grades Comparison
Here is a comparison of the recent grades assigned to Datadog, Inc. and Perfect Corp. by major financial institutions:
Datadog, Inc. Grades
The following table summarizes recent grades from leading grading companies for Datadog, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-16 |
| Morgan Stanley | Upgrade | Overweight | 2026-01-12 |
| Barclays | Maintain | Overweight | 2026-01-12 |
| Keybanc | Maintain | Overweight | 2026-01-12 |
| Truist Securities | Maintain | Hold | 2026-01-07 |
| Jefferies | Maintain | Buy | 2026-01-05 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-11-12 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-07 |
Datadog’s grades predominantly indicate a positive outlook, with multiple buy and overweight ratings and a consensus “Buy” consensus among 45 analysts (37 buy, 7 hold, 1 sell).
Perfect Corp. Grades
The following table summarizes recent grades from major grading companies for Perfect Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2024-02-29 |
| Goldman Sachs | Maintain | Neutral | 2023-10-26 |
| Piper Sandler | Maintain | Neutral | 2023-10-25 |
| Piper Sandler | Maintain | Neutral | 2023-07-26 |
| Piper Sandler | Maintain | Neutral | 2023-07-25 |
| Piper Sandler | Maintain | Neutral | 2023-04-27 |
| Oppenheimer | Downgrade | Perform | 2023-04-20 |
| Oppenheimer | Downgrade | Perform | 2023-04-19 |
| Oppenheimer | Downgrade | Perform | 2023-04-18 |
| Piper Sandler | Maintain | Neutral | 2023-03-08 |
Perfect Corp.’s ratings are consistently neutral or hold, with a consensus rating of “Hold” from 3 analysts, indicating a cautious stance without strong buy signals.
Which company has the best grades?
Datadog, Inc. has received notably better grades than Perfect Corp., with multiple buy and overweight ratings versus Perfect’s neutral and hold assessments. This suggests Datadog is currently viewed more favorably by analysts, potentially indicating stronger confidence in its performance and growth prospects.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Datadog, Inc. (DDOG) and Perfect Corp. (PERF) based on their latest financial and strategic metrics.
| Criterion | Datadog, Inc. (DDOG) | Perfect Corp. (PERF) |
|---|---|---|
| Diversification | Moderate product/service range; primarily cloud monitoring | Focused niche in beauty tech and AI; less diversified |
| Profitability | Net margin 6.85% (neutral); ROIC 1.07% (unfavorable) | Net margin 8.34% (neutral); ROIC -2.1% (unfavorable) |
| Innovation | Strong innovation with growing ROIC trend (+224%) | Growing ROIC trend (+46%) but currently value-destroying |
| Global presence | Established global footprint | Smaller international reach but expanding |
| Market Share | Significant in cloud monitoring market | Emerging leader in AI-driven beauty tech |
Key takeaways: Both companies are currently shedding value with ROIC below WACC, though they show improving profitability trends. Datadog benefits from broader diversification and solid market share, while Perfect Corp. excels in innovation within a specialized sector but faces challenges in profitability and liquidity. Investors should weigh growth potential against current inefficiencies.
Risk Analysis
Below is a comparative table highlighting key risks for Datadog, Inc. (DDOG) and Perfect Corp. (PERF) based on the most recent data from 2024:
| Metric | Datadog, Inc. (DDOG) | Perfect Corp. (PERF) |
|---|---|---|
| Market Risk | Beta 1.26 indicates moderate volatility | Beta 0.45 indicates lower volatility |
| Debt level | Debt-to-Equity 0.68 (neutral), moderate debt | Debt-to-Equity 0.0 (favorable), virtually no debt |
| Regulatory Risk | Moderate, US tech sector oversight | Moderate, operates in Taiwan with emerging AI regulations |
| Operational Risk | Large workforce (6.5K), complex SaaS platform | Smaller company (342 employees), niche AI/AR tech |
| Environmental Risk | Low direct impact, primarily software-based | Low direct impact, focused on software solutions |
| Geopolitical Risk | US-based with international exposure | Taiwan-based, exposed to regional geopolitical tensions |
Datadog faces moderate market volatility and some debt-related financial risks, coupled with operational complexity due to its size. Perfect Corp. has a safer debt profile but shows signs of financial distress (Altman Z-Score in distress zone) and is exposed to geopolitical risk given its Taiwan base. The most impactful risks are Datadog’s valuation concerns and operational scale, and Perfect Corp.’s financial fragility and geopolitical exposure.
Which Stock to Choose?
Datadog, Inc. (DDOG) shows strong income growth with a 344.81% revenue increase over five years and a favorable 92.86% income statement score. Its financial ratios are slightly unfavorable, with a high P/E of 261 and modest profitability metrics. The company carries moderate debt and holds a very favorable C+ rating.
Perfect Corp. (PERF) exhibits more moderate income growth of 101.53% over the same period, with a 78.57% favorable income statement rating. Its financial ratios are also slightly unfavorable, but it benefits from low debt levels and a very favorable A- rating. Profitability is positive but less robust than DDOG’s.
Investors focused on growth may find DDOG’s rapid income expansion and improving profitability appealing, whereas those prioritizing financial stability and lower leverage might view PERF’s stronger rating and conservative debt profile as more suitable. Both companies show signs of value destruction despite growing ROIC trends, suggesting cautious interpretation.
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 Datadog, Inc. and Perfect Corp. to enhance your investment decisions:
