COST vs DDOG: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Datadog, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
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.
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Valuation & Fundamentals
| Metric |
COST |
DDOG |
| Current Price |
$896.48 |
$256.92 |
| Fair Value Estimate |
$1,117.50 |
$330.72 |
| Upside to Fair Value |
+24.7%
|
+28.7%
|
| Market Cap |
$397.6B |
$91.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
350.6x
|
| Price / Sales |
1.3x
|
23.1x
|
| Price / FCF |
42.4x
|
78.9x
|
| Revenue Growth YoY |
+11.1%
|
+35.6%
|
| Gross Margin |
17.5%
|
79.5%
|
| Operating Margin |
3.9%
|
0.4%
|
| Return on Equity |
28.0%
|
4.6%
|
| Dividend Yield |
0.62% |
0% |
| FCF Yield |
2.36%
|
1.27%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
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 |
COST |
DDOG |
| Zone Low |
$838.12 |
$248.04 |
| Zone High |
$949.88 |
$281.11 |
| In Buy Zone? |
Yes
|
Yes
|