Datadog (NASDAQ:DDOG – Get Free Report) and Bitfarms (NASDAQ:BITF – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of current ratings and target prices for Datadog and Bitfarms, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Datadog | 1 | 5 | 38 | 1 | 2.87 |
| Bitfarms | 1 | 1 | 5 | 0 | 2.57 |
Datadog presently has a consensus target price of $276.32, suggesting a potential upside of 16.57%. Bitfarms has a consensus target price of $4.67, suggesting a potential upside of 45.19%. Given Bitfarms’ higher probable upside, analysts clearly believe Bitfarms is more favorable than Datadog.
Risk & Volatility
Valuation & Earnings
This table compares Datadog and Bitfarms”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Datadog | $3.43 billion | 24.84 | $107.74 million | $0.49 | 483.76 |
| Bitfarms | $229.28 million | 8.47 | -$138.65 million | ($0.23) | -14.00 |
Datadog has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Datadog, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Datadog and Bitfarms’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Datadog | 4.48% | 5.67% | 3.24% |
| Bitfarms | -48.26% | -4.48% | -3.71% |
Insider & Institutional Ownership
78.3% of Datadog shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 6.5% of Datadog shares are owned by company insiders. Comparatively, 9.5% of Bitfarms shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Datadog beats Bitfarms on 12 of the 15 factors compared between the two stocks.
About Datadog
Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.
About Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.
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