ANET vs DDOG: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and Datadog, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Arista Networks, Inc. · Technology
$172.86
+82.8% 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%).
ANET trades at a lower forward P/E
(61.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
DDOG |
| Current Price |
$172.86 |
$126.61 |
| Fair Value Estimate |
$316.03 |
$373.02 |
| Upside to Fair Value |
+82.8%
|
+194.6%
|
| Market Cap |
$217.7B |
$44.8B |
| Forward P/E |
61.9x
|
412.3x
|
| EV / EBITDA |
54.9x
|
202.3x
|
| Price / Sales |
24.2x
|
13.1x
|
| Price / FCF |
51.2x
|
44.8x
|
| Revenue Growth YoY |
+28.9%
|
+29.2%
|
| Gross Margin |
64.1%
|
79.9%
|
| Operating Margin |
42.8%
|
-1.3%
|
| Return on Equity |
31.0%
|
3.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.95%
|
2.23%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Arista Networks is a leading provider of high-speed data center networking hardware and software, specializing in Ethernet switches and cloud networking solutions. The company benefits from strong revenue growth driven by AI and hyperscale cloud demand, with 28.9% revenue growth and 19.3% earnings growth in the most recent quarter. High margins, including a 64.1% gross margin and 42.8% operating …
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 |
ANET |
DDOG |
| Zone Low |
$237.02 |
$279.76 |
| Zone High |
$268.63 |
$317.07 |
| In Buy Zone? |
Yes
|
Yes
|