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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Datadog, Inc. · Technology
$200.16
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
DDOG has more upside to fair value
(+45.0%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
DDOG |
| Current Price |
$406.91 |
$200.16 |
| Fair Value Estimate |
$358.00 |
$290.23 |
| Upside to Fair Value |
-12.0%
|
+45.0%
|
| Market Cap |
$322.9B |
$71.2B |
| Forward P/E |
30.3x
|
521.2x
|
| EV / EBITDA |
30.2x
|
415.7x
|
| Price / Sales |
10.2x
|
19.4x
|
| Price / FCF |
51.6x
|
66.0x
|
| Revenue Growth YoY |
+11.0%
|
+32.2%
|
| Gross Margin |
49.9%
|
79.9%
|
| Operating Margin |
31.9%
|
-0.7%
|
| Return on Equity |
47.0%
|
3.8%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.51%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Datadog, Inc. is a leading cloud-based monitoring and analytics platform specializing in observability and security solutions for enterprise IT infrastructure. The company demonstrates high business quality with durable competitive moats driven by product integration, developer-centric design, and scale. Despite strong revenue growth of 27.8% year-over-year in fiscal 2025 and earnings growth of 1…
Accumulation Zones
| Metric |
AMAT |
DDOG |
| Zone Low |
$268.50 |
$217.67 |
| Zone High |
$304.30 |
$246.70 |
| In Buy Zone? |
No
|
Yes
|