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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Datadog, Inc. · Technology
$126.61
+194.6% upside to fair value
Grade C
High Quality
QuantHub Verdict
DDOG has more upside to fair value
(+194.6%).
AMAT trades at a lower forward P/E
(39.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
DDOG |
| Current Price |
$394.33 |
$126.61 |
| Fair Value Estimate |
$162.08 |
$373.02 |
| Upside to Fair Value |
-58.9%
|
+194.6%
|
| Market Cap |
$312.9B |
$44.8B |
| Forward P/E |
39.9x
|
412.3x
|
| EV / EBITDA |
31.6x
|
202.3x
|
| Price / Sales |
11.1x
|
13.1x
|
| Price / FCF |
50.5x
|
44.8x
|
| Revenue Growth YoY |
-2.1%
|
+29.2%
|
| Gross Margin |
48.7%
|
79.9%
|
| Operating Margin |
29.1%
|
-1.3%
|
| Return on Equity |
38.9%
|
3.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
2.23%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
Datadog, Inc. operates a leading cloud-based observability and security platform that drives high customer retention and multi-product adoption, supporting strong revenue growth of 28% year-over-year in fiscal 2025 to $3.43 billion. The company benefits from a usage-based subscription model with 85% of customers using two or more products, creating switching costs and a growing moat. Despite this…
Accumulation Zones
| Metric |
AMAT |
DDOG |
| Zone Low |
$121.56 |
$279.76 |
| Zone High |
$137.77 |
$317.07 |
| In Buy Zone? |
No
|
Yes
|