Datadog, Inc. and ServiceTitan, Inc. stand out as key players in the software application sector, each driving innovation in cloud-based solutions and field service management. Datadog excels in monitoring and analytics for IT operations, while ServiceTitan focuses on optimizing service workflows for residential and commercial infrastructure. This article will help you navigate their market positions and growth strategies to identify the most promising investment opportunity. Let’s explore which company deserves a place in your portfolio.
Table of contents
Companies Overview
I will begin the comparison between Datadog and ServiceTitan by providing an overview of these two companies and their main differences.
Datadog Overview
Datadog, Inc. offers a SaaS monitoring and analytics platform targeting developers, IT operations, and business users globally. It integrates infrastructure monitoring, application performance, log management, and security to deliver real-time observability of technology stacks. Founded in 2010 and headquartered in New York City, Datadog is a key player in cloud-based software solutions with a market cap of $41.7B.
ServiceTitan Overview
ServiceTitan, Inc. focuses on software for managing field service operations related to installation, maintenance, and servicing of residential and commercial infrastructure. Established in 2008 and based in Glendale, CA, ServiceTitan serves the application software industry with a market cap of $8.5B. Its platform supports efficient field service management for various sectors within the technology sphere.
Key similarities and differences
Both companies operate in the software application industry and trade on NASDAQ, offering technology solutions to improve operational efficiency. Datadog emphasizes cloud monitoring and analytics across IT environments, while ServiceTitan specializes in field service management software. Datadog’s larger market cap and broader cloud focus contrast with ServiceTitan’s niche in managing physical service workflows and infrastructure maintenance.
Income Statement Comparison
This table presents the latest available income statement figures for Datadog, Inc. and ServiceTitan, Inc., providing a side-by-side financial overview for the most recent fiscal years.
| Metric | Datadog, Inc. (2024) | ServiceTitan, Inc. (2025) |
|---|---|---|
| Market Cap | 41.7B | 8.5B |
| Revenue | 2.68B | 772M |
| EBITDA | 318M | -141M |
| EBIT | 211M | -221M |
| Net Income | 184M | -240M |
| EPS | 0.55 | -8.53 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Datadog, Inc.
Datadog’s revenue and net income have shown strong growth from 2020 to 2024, with revenue increasing from $603M to $2.68B and net income turning positive to $184M in 2024 after prior losses. Margins have generally improved, with a gross margin of 80.76% and a net margin of 6.85% in 2024. The latest year saw robust revenue growth of 26.1% and a sharp increase in net margin, reflecting improved profitability.
ServiceTitan, Inc.
ServiceTitan reported revenue growth from $468M in 2023 to $772M in 2025, supported by a favorable gross margin near 65%. However, operating and net margins remain negative, with net losses deepening to -$239M in 2025 despite revenue gains. The latest year showed a 25.6% revenue increase but worsening EBIT margin at -28.7%, indicating challenges in controlling operating expenses relative to growth.
Which one has the stronger fundamentals?
Datadog demonstrates stronger fundamentals with consistent revenue and net income growth, favorable margins, and improved profitability metrics over the period. ServiceTitan’s revenue growth is solid, but persistent net losses and negative EBIT margins highlight weaker operational efficiency. Overall, Datadog’s income statement performance appears more robust and stable based on the available data.
Financial Ratios Comparison
The table below presents the most recent financial ratios for Datadog, Inc. and ServiceTitan, Inc., reflecting their fiscal year 2024 and 2025 data respectively, providing a snapshot of profitability, liquidity, leverage, and market valuation metrics.
| Ratios | Datadog, Inc. (DDOG) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| ROE | 6.77% | -16.44% |
| ROIC | 1.07% | -14.11% |
| P/E | 261.42 | -18.12 |
| P/B | 17.70 | 2.98 |
| Current Ratio | 2.64 | 3.74 |
| Quick Ratio | 2.64 | 3.74 |
| D/E (Debt-to-Equity) | 0.68 | 0.11 |
| Debt-to-Assets | 31.84% | 9.35% |
| Interest Coverage | 7.68 | -14.82 |
| Asset Turnover | 0.46 | 0.44 |
| Fixed Asset Turnover | 6.72 | 9.57 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Datadog, Inc.
Datadog shows a mixed ratio profile with favorable liquidity and interest coverage but struggles with profitability metrics such as ROE and ROIC, which are rated unfavorable. The high P/E and P/B ratios suggest a premium valuation. Datadog does not pay dividends, reflecting a reinvestment strategy focused on growth and heavy R&D expenditure, supported by positive free cash flow to equity but negative free cash flow to firm.
ServiceTitan, Inc.
ServiceTitan’s ratios reveal significant challenges, including negative net margin, ROE, and interest coverage, all unfavorable. However, its low debt levels and favorable WACC and fixed asset turnover ratios indicate financial prudence in capital structure. Like Datadog, ServiceTitan pays no dividend, likely due to ongoing investments during its growth phase, prioritizing R&D and acquisitions over shareholder distributions.
Which one has the best ratios?
Both companies face unfavorable profitability ratios and do not distribute dividends, indicating reinvestment priorities. Datadog has stronger liquidity and interest coverage, whereas ServiceTitan benefits from lower leverage and cost of capital. Each has roughly similar proportions of favorable and unfavorable ratios, leading to a slightly unfavorable overall assessment for both.
Strategic Positioning
This section compares the strategic positioning of Datadog and ServiceTitan, focusing on Market position, Key segments, and exposure to technological disruption:
Datadog, Inc.
- Strong presence in cloud-based monitoring and analytics, facing high competition.
- SaaS platform integrating monitoring, security, and analytics for IT and business users globally.
- Operates in a rapidly evolving cloud software space with ongoing innovation demands.
ServiceTitan, Inc.
- Focused on field service software for residential and commercial infrastructure.
- Platform and subscription revenues driven by field service management solutions.
- Exposure tied to the field service software market, less directly impacted by broad tech shifts.
Datadog vs ServiceTitan Positioning
Datadog pursues a diversified SaaS approach in cloud monitoring, offering broad IT observability solutions. ServiceTitan concentrates on niche field service software, relying heavily on platform and subscription revenues, which may limit diversification but focus on specific market needs.
Which has the best competitive advantage?
Both companies are shedding value relative to their cost of capital. Datadog shows growing profitability trends, while ServiceTitan’s profitability remains stable but unfavorable, suggesting Datadog may have a slightly stronger moat despite current challenges.
Stock Comparison
The stock prices of Datadog, Inc. (DDOG) and ServiceTitan, Inc. (TTAN) have both experienced bearish trends over the past 12 months, with notable declines and differing acceleration patterns in their recent trading dynamics.
Trend Analysis
Datadog, Inc. (DDOG) showed a bearish trend over the past year with an 8.1% price decline and a deceleration in trend. It reached a high of 191.24 and a low of 87.93, with considerable volatility (std deviation 18.63).
ServiceTitan, Inc. (TTAN) also exhibited a bearish trend with a 9.22% drop over 12 months but with accelerating decline. Its price ranged between 85.07 and 129.26, showing lower volatility (std deviation 9.86) than DDOG.
Comparing both stocks, TTAN posted a slightly larger overall loss (-9.22%) than DDOG (-8.1%), indicating DDOG delivered a marginally better market performance over the past year.
Target Prices
The current analyst consensus for these technology companies indicates promising upside potential based on target price estimates.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Datadog, Inc. | 215 | 105 | 177.67 |
| ServiceTitan, Inc. | 145 | 117 | 132.44 |
Analysts expect Datadog’s stock to appreciate significantly from its current price of $119.02, while ServiceTitan’s consensus target also suggests strong growth above its present $90.78 level.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Datadog, Inc. and ServiceTitan, Inc.:
Rating Comparison
Datadog, Inc. Rating
- Rating: C+ indicating a very favorable overall evaluation
- Discounted Cash Flow Score: 4, a favorable valuation score
- ROE Score: 2, moderate efficiency in generating equity profits
- ROA Score: 3, moderate effectiveness in asset utilization
- Debt To Equity Score: 2, moderate financial risk level
- Overall Score: 2, moderate overall financial standing
ServiceTitan, Inc. Rating
- Rating: C- indicating a very favorable overall evaluation
- Discounted Cash Flow Score: 1, a very unfavorable valuation score
- ROE Score: 1, very unfavorable efficiency in equity profits
- ROA Score: 1, very unfavorable effectiveness in asset utilization
- Debt To Equity Score: 3, moderate financial risk level
- Overall Score: 1, very unfavorable overall financial standing
Which one is the best rated?
Based strictly on the provided data, Datadog holds higher scores in discounted cash flow, ROE, ROA, and overall financial standing compared to ServiceTitan. ServiceTitan scores better only in debt to equity but has lower ratings overall.
Scores Comparison
The comparison of Datadog and ServiceTitan scores is as follows:
DDOG Scores
- Altman Z-Score: 11.37, in safe zone, indicating low bankruptcy risk.
- Piotroski Score: 6, average financial strength.
TTAN Scores
- Altman Z-Score: 15.74, in safe zone, indicating very low bankruptcy risk.
- Piotroski Score: 6, average financial strength.
Which company has the best scores?
ServiceTitan has a higher Altman Z-Score of 15.74 compared to Datadog’s 11.37, both in the safe zone. Both companies share the same Piotroski Score of 6, reflecting average financial strength.
Grades Comparison
Here is a detailed comparison of the latest grades assigned to Datadog, Inc. and ServiceTitan, Inc.:
Datadog, Inc. Grades
The following table lists recent grades from reputable 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 show a strong buy and overweight consensus, with most firms maintaining positive ratings and one recent upgrade.
ServiceTitan, Inc. Grades
This table shows recent grading data from recognized firms for ServiceTitan, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Overweight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-11-20 |
| Wells Fargo | Maintain | Overweight | 2025-09-19 |
| Stifel | Maintain | Buy | 2025-09-19 |
| Piper Sandler | Maintain | Overweight | 2025-09-19 |
| Canaccord Genuity | Maintain | Buy | 2025-09-19 |
| Citigroup | Maintain | Neutral | 2025-09-09 |
ServiceTitan’s grades also reflect a generally positive outlook, dominated by buy, outperform, and overweight ratings, with no recent downgrades.
Which company has the best grades?
Both Datadog and ServiceTitan have predominantly positive grades, with strong buy and overweight ratings from respected firms. Datadog shows a slightly broader consensus with more buy ratings, while ServiceTitan maintains consistent outperformance and overweight ratings. Investors may interpret these grades as indicating favorable growth potential and generally positive market sentiment for both companies.
Strengths and Weaknesses
Below is a comparison of Datadog, Inc. (DDOG) and ServiceTitan, Inc. (TTAN) highlighting their key strengths and weaknesses based on the most recent financial and operational data.
| Criterion | Datadog, Inc. (DDOG) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| Diversification | Moderate product range, strong SaaS focus | Primarily platform and subscription services |
| Profitability | Slightly favorable net margin (6.85%), but overall value destruction with growing ROIC | Negative net margin (-30.98%), ongoing value destruction with stable ROIC |
| Innovation | High fixed asset turnover (6.72), indicating efficient asset use | Very high fixed asset turnover (9.57), strong asset efficiency |
| Global presence | Established with solid current and quick ratios (2.64 each) | Smaller debt load and quick ratio favorable, but weaker current ratio (3.74) |
| Market Share | High valuation multiples (PE 261.42, PB 17.7) indicating growth expectations | Lower valuation multiples (PE negative, PB 2.98), reflecting current challenges |
Key takeaways: Both companies currently face challenges with value creation, with DDOG showing improving profitability and TTAN maintaining stable but negative returns. Investors should weigh DDOG’s growth potential against TTAN’s operational efficiency and financial stability risks.
Risk Analysis
Below is a comparative table of key risks for Datadog, Inc. (DDOG) and ServiceTitan, Inc. (TTAN) based on their most recent financial and market data from 2024-2025.
| Metric | Datadog, Inc. (DDOG) | ServiceTitan, Inc. (TTAN) |
|---|---|---|
| Market Risk | Beta 1.26, moderate volatility | Beta -0.85, inverse market correlation |
| Debt level | Debt/Equity 0.68, neutral risk | Debt/Equity 0.11, low leverage |
| Regulatory Risk | Moderate, tech sector scrutiny | Moderate, emerging public company |
| Operational Risk | Medium, SaaS platform complexity | Medium, service operations scale-up |
| Environmental Risk | Low, software-based business | Low, software-based business |
| Geopolitical Risk | Moderate, global cloud services | Low, mostly US-focused business |
In synthesis, Datadog carries typical market risk with above-market volatility and moderate leverage, but benefits from strong financial health and stable Altman Z-score indicating low bankruptcy risk. ServiceTitan shows low financial leverage but suffers from significant negative profitability and unfavorable operational ratios, increasing risk despite a safe Altman Z-score. Market and operational risks are most impactful for both, with Datadog more sensitive to tech market cycles and ServiceTitan to scaling challenges. Caution is advised when considering ServiceTitan due to its negative margins and financial performance.
Which Stock to Choose?
Datadog, Inc. (DDOG) shows strong income growth with a 344.81% revenue increase over 2020-2024 and a favorable 92.86% global income statement evaluation. Its financial ratios are slightly unfavorable, with a 28.57% favorable ratio rate and moderate debt. The company is shedding value but improving profitability, with a very favorable C+ rating and safe-zone Altman Z-Score.
ServiceTitan, Inc. (TTAN) delivers moderate income growth of 65.02% revenue over 2023-2025 with a favorable 50% global income statement evaluation but faces challenges in profitability. Its financial ratios are slightly unfavorable, with 42.86% favorable ratios and low debt levels. The company is shedding value with stable profitability, holds a very favorable C- rating, and also scores in the safe zone on Altman Z-Score.
Investors focused on growth and income momentum might find Datadog’s improving profitability and strong income growth appealing, while those prioritizing lower debt and stable profitability could see ServiceTitan’s profile as more consistent. Both stocks exhibit slightly unfavorable financial ratios and value destruction, suggesting careful consideration of risk tolerance and investment objectives.
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 ServiceTitan, Inc. to enhance your investment decisions:
