Financial Survey: Bitfarms (NASDAQ:BITF) & Datadog (NASDAQ:DDOG)

Datadog (NASDAQ:DDOG) and Bitfarms (NASDAQ:BITF) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Datadog has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, suggesting that its stock price is 277% more volatile than the S&P 500.

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%

Institutional & Insider Ownership

78.3% of Datadog shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 6.5% of Datadog shares are held by company insiders. Comparatively, 9.5% of Bitfarms shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Datadog and Bitfarms”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datadog	$3.43 billion	22.31	$107.74 million	$0.49	434.55
Bitfarms	$229.28 million	9.12	-$138.65 million	($0.23)	-15.09

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.

Analyst Recommendations

This is a summary of recent recommendations for Datadog and Bitfarms, as reported by MarketBeat.

	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 price target of $276.32, suggesting a potential upside of 29.77%. Bitfarms has a consensus price target of $4.67, suggesting a potential upside of 34.73%. Given Bitfarms’ higher probable upside, analysts plainly believe Bitfarms is more favorable than Datadog.

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.