Crwd vs Ddog

Both stocks are category crushers and have been discussed on the board for sometime (am long on both).

Would like to hear from the group/techies if they could invest in one or the other valuation aside which one would they pick?

Which one has the stronger moat, which industry has the bigger TAM and which stock has the bigger upside potential in 3-5 years (and reasons why).

The market appears to be giving Ddog more credit right now vs Crwd based on EV/sales so would like to hear everyone’s thoughts.

Just looking at some key metrics, both companies are (remarkably) similar:

Annual Rev increase (Q1’19->Q1’20)
DDOG: 87%
CRWD: 85%

Recurring Revenue
DDOG: 189%
CRWD: 188%

DBNER
DDOG: 130%
CRWD: 120%

Adj. OPS Margin %
DDOG: 12%
CRWD: 1%

Adj. Gross Margin %
DDOG: 80%
CRWD: 75%

Based on these metrics, DDOG might have a very small advantage, but that’s not always reflected in the market. Both companies have compelling advantages and fundamentals.

32 Likes

Yes and both have a very similar market capitalization.

At today’s close 26b Ddog vs approximately 21b market cap to Crowd. Just be curious to know what people think long term which Company is the more likely to dominate their space (either because of competitive advantages or because of a bigger TAM).