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 2026-07-09.
Datadog, Inc. · Technology
$261.09
+45.0% upside to fair value
Grade B
High Quality
VS
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
DDOG has more upside to fair value
(+45.0%).
PANW trades at a lower forward P/E
(248.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DDOG |
PANW |
| Current Price |
$261.09 |
$287.78 |
| Fair Value Estimate |
$378.58 |
$296.19 |
| Upside to Fair Value |
+45.0%
|
+2.9%
|
| Market Cap |
$92.9B |
$196.1B |
| Forward P/E |
678.5x
|
248.9x
|
| EV / EBITDA |
410.4x
|
85.9x
|
| Price / Sales |
25.3x
|
18.5x
|
| Price / FCF |
86.1x
|
45.7x
|
| Revenue Growth YoY |
+32.2%
|
+31.1%
|
| Gross Margin |
79.9%
|
71.9%
|
| Operating Margin |
-0.7%
|
9.6%
|
| Return on Equity |
3.8%
|
6.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.16%
|
2.19%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Datadog, Inc. is a leading provider of cloud-scale monitoring and analytics software for developers, IT operations teams, and business users in the technology sector. The company exhibits strong business quality with a durable competitive moat supported by high gross margins of 79.9% and rapid revenue growth of 32.2% in the most recent quarter. Despite this, the stock trades at a very high valuat…
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
Accumulation Zones
| Metric |
DDOG |
PANW |
| Zone Low |
$283.94 |
$222.14 |
| Zone High |
$321.79 |
$251.76 |
| In Buy Zone? |
Yes
|
No
|