Datadog (NASDAQ:DDOG – Get Free Report) and Crexendo (NASDAQ:CXDO – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
78.3% of Datadog shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 6.5% of Datadog shares are held by company insiders. Comparatively, 47.2% of Crexendo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Datadog and Crexendo”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Datadog | $3.43 billion | 29.69 | $107.74 million | $0.49 | 578.24 |
| Crexendo | $68.17 million | 2.84 | $5.07 million | $0.14 | 41.43 |
Datadog has higher revenue and earnings than Crexendo. Crexendo is trading at a lower price-to-earnings ratio than Datadog, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Datadog has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Datadog and Crexendo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Datadog | 1 | 4 | 38 | 3 | 2.93 |
| Crexendo | 0 | 1 | 3 | 0 | 2.75 |
Datadog currently has a consensus price target of $280.51, indicating a potential downside of 1.00%. Crexendo has a consensus price target of $10.50, indicating a potential upside of 81.03%. Given Crexendo’s higher possible upside, analysts plainly believe Crexendo is more favorable than Datadog.
Profitability
This table compares Datadog and Crexendo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Datadog | 4.48% | 5.67% | 3.24% |
| Crexendo | 5.31% | 14.34% | 11.44% |
Summary
Datadog beats Crexendo on 10 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 Crexendo
Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.
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