AMAT vs DDOG: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Datadog, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Datadog, Inc. · Technology
$256.92
+28.7% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
DDOG has more upside to fair value
(+28.7%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
DDOG |
| Current Price |
$474.38 |
$256.92 |
| Fair Value Estimate |
$457.95 |
$330.72 |
| Upside to Fair Value |
-3.5%
|
+28.7%
|
| Market Cap |
$376.6B |
$91.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
350.6x
|
| Price / Sales |
12.2x
|
23.1x
|
| Price / FCF |
67.0x
|
78.9x
|
| Revenue Growth YoY |
+24.8%
|
+35.6%
|
| Gross Margin |
49.4%
|
79.5%
|
| Operating Margin |
30.5%
|
0.4%
|
| Return on Equity |
40.4%
|
4.6%
|
| Dividend Yield |
0.42% |
0% |
| FCF Yield |
1.49%
|
1.27%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Datadog is a cloud observability platform that unifies infrastructure monitoring, application performance management, log management, security, and incident response into a single SaaS offering used by developers and IT operations teams across North America and internationally. The business quality is high on the top line: revenue grew 35.6% year over year in the most recent quarter, TTM gross ma…
Accumulation Zones
| Metric |
AMAT |
DDOG |
| Zone Low |
$343.46 |
$248.04 |
| Zone High |
$389.26 |
$281.11 |
| In Buy Zone? |
No
|
Yes
|