DDOG vs RTX: Which Is the Better Buy?
Side-by-side comparison of Datadog, Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Datadog, Inc. · Technology
$256.92
+28.7% upside to fair value
Med Conviction
Grade C
High Quality
VS
RTX Corporation · Industrials
$193.54
+33.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
RTX has more upside to fair value
(+33.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
DDOG |
RTX |
| Current Price |
$256.92 |
$193.54 |
| Fair Value Estimate |
$330.72 |
$257.36 |
| Upside to Fair Value |
+28.7%
|
+33.0%
|
| Market Cap |
$91.5B |
$260.9B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
350.6x
|
18.1x
|
| Price / Sales |
23.1x
|
2.8x
|
| Price / FCF |
78.9x
|
21.7x
|
| Revenue Growth YoY |
+35.6%
|
+14.5%
|
| Gross Margin |
79.5%
|
20.3%
|
| Operating Margin |
0.4%
|
11.2%
|
| Return on Equity |
4.6%
|
11.8%
|
| Dividend Yield |
0% |
1.46% |
| FCF Yield |
1.27%
|
4.6%
|
| Analyst Consensus |
Strong Buy
|
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…
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electro…
Accumulation Zones
| Metric |
DDOG |
RTX |
| Zone Low |
$248.04 |
$193.02 |
| Zone High |
$281.11 |
$218.76 |
| In Buy Zone? |
Yes
|
Yes
|