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DDOG vs ZM: which stock is the better value?

By Wealth Awesome -
Stocks & ETFs:DDOG.USZM.US

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Zoom looks cheaper on two of the three valuation measures in this snapshot. That makes the comparison worth a closer look, but it doesn’t show which company offers better value.

Datadog Inc. (DDOG) and Zoom Video Communications Inc. (ZM) are both in the Information Technology sector, within the Software & Services industry group. The figures tell a mixed story: Zoom has the lower P/E and P/B, while Datadog has the lower PEG. Here’s what the snapshot shows—and what it can’t tell investors on its own.

Investor takeaway: Zoom has the lower P/E and P/B: 8.9 versus Datadog’s 470.5, and 2.38 versus 17.76. Datadog’s PEG is lower, at 1.22 compared with Zoom’s 2.53. These ratios measure different aspects of valuation. They don’t prove that either stock is undervalued or the better investment.

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Zoom is lower on two of three valuation measures

In the snapshot, Zoom’s P/E is 8.9, compared with Datadog’s 470.5. Zoom’s P/B is also lower, at 2.38 versus 17.76. Datadog has the lower PEG, at 1.22 compared with Zoom’s 2.53. So Zoom screens cheaper on two measures, but the comparison is mixed.

Bull case

Zoom’s lower P/E and P/B, along with its 32.1% TTM ROE, may interest investors comparing its valuation with Datadog’s. But these figures don’t explain why the companies’ multiples differ or show how either business will perform.

Bear case

Zoom’s PEG is higher than Datadog’s, so it doesn’t look cheaper on every measure. A low P/E or P/B alone doesn’t show whether a stock is inexpensive given its prospects and risks.

The valuation comparison is mixed

Zoom’s P/E of 8.9 is well below Datadog’s 470.5, and its P/B of 2.38 is below Datadog’s 17.76. Zoom screens cheaper on those two measures. But Datadog has the lower PEG: 1.22 compared with Zoom’s 2.53. The results are mixed, and having the lower figure on two measures isn’t a complete valuation verdict. P/E, PEG and P/B each measure something different, and the snapshot doesn’t explain why the companies’ multiples differ. For more company details, see Datadog’s stock page and Zoom’s stock page.

Profitability and analyst data add context

Zoom reports TTM ROE of 32.1%, compared with Datadog’s 4.7%. Both have a dividend yield of 0.00%. The snapshot lists Datadog’s market cap at US$84.5B and Zoom’s at US$26.8B. It also lists analyst consensus ratings of Strong Buy for Datadog and Buy for Zoom, with price targets of US$294.49 and US$118.58, respectively. These are the ratings and targets shown in the snapshot, not a promise of future returns. The last adjusted closes, dated 2026-11-02, were US$216.10 for Datadog and US$91.98 for Zoom. These figures add context, but they don’t establish which stock offers better value.

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Published: November 3, 2026
Last Updated: November 3, 2026

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