DDOG vs PANW: Which Is the Better Buy?
Side-by-side comparison of Datadog, Inc. and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Datadog, Inc. · Technology
$256.92
+28.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
Palo Alto Networks, Inc. · Technology
$374.74
-5.2% 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 |
DDOG |
PANW |
| Current Price |
$256.92 |
$374.74 |
| Fair Value Estimate |
$330.72 |
$355.11 |
| Upside to Fair Value |
+28.7%
|
-5.2%
|
| Market Cap |
$91.5B |
$305.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
350.6x
|
569.8x
|
| Price / Sales |
23.1x
|
26.6x
|
| Price / FCF |
78.9x
|
64.0x
|
| Revenue Growth YoY |
+35.6%
|
+34.4%
|
| Gross Margin |
79.5%
|
70.4%
|
| Operating Margin |
0.4%
|
6.1%
|
| Return on Equity |
4.6%
|
1.7%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.27%
|
1.56%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Palo Alto Networks is a global cybersecurity leader built around next-generation firewalls, the Panorama management platform, and a broad subscription portfolio spanning threat prevention, cloud security, secure access, and security analytics, sold to medium and large enterprises, service providers, and governments through direct and channel distribution. The business quality is genuinely high on…
Accumulation Zones
| Metric |
DDOG |
PANW |
| Zone Low |
$248.04 |
$266.33 |
| Zone High |
$281.11 |
$301.84 |
| In Buy Zone? |
Yes
|
No
|