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 2026-05-04.
Datadog, Inc. · Technology
$126.61
+194.6% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
DDOG has more upside to fair value
(+194.6%).
RTX trades at a lower forward P/E
(32.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
DDOG |
RTX |
| Current Price |
$126.61 |
$172.90 |
| Fair Value Estimate |
$373.02 |
$136.05 |
| Upside to Fair Value |
+194.6%
|
-21.3%
|
| Market Cap |
$44.8B |
$232.8B |
| Forward P/E |
412.3x
|
32.1x
|
| EV / EBITDA |
202.3x
|
19.2x
|
| Price / Sales |
13.1x
|
2.6x
|
| Price / FCF |
44.8x
|
27.9x
|
| Revenue Growth YoY |
+29.2%
|
+8.7%
|
| Gross Margin |
79.9%
|
20.2%
|
| Operating Margin |
-1.3%
|
10.4%
|
| Return on Equity |
3.2%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.23%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
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…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
DDOG |
RTX |
| Zone Low |
$279.76 |
$102.04 |
| Zone High |
$317.07 |
$115.64 |
| In Buy Zone? |
Yes
|
No
|