Contrasting Locafy (NASDAQ:LCFY) and Datadog (NASDAQ:DDOG)

Datadog (NASDAQ:DDOG) and Locafy (NASDAQ:LCFY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

78.3% of Datadog shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 6.5% of Datadog shares are held by company insiders. Comparatively, 28.7% of Locafy shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings for Datadog and Locafy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datadog	2	1	40	1	2.91
Locafy	1	0	0	0	1.00

Datadog presently has a consensus price target of $211.57, suggesting a potential upside of 4.57%. Given Datadog’s stronger consensus rating and higher possible upside, research analysts clearly believe Datadog is more favorable than Locafy.

Valuation and Earnings

This table compares Datadog and Locafy”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	20.81	$107.74 million	$0.38	532.42
Locafy	$2.07 million	3.75	-$2.79 million	($1.04)	-4.15

Datadog has higher revenue and earnings than Locafy. Locafy 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 Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Datadog	3.69%	4.83%	2.72%
Locafy	N/A	N/A	N/A

Risk and Volatility

Datadog has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Summary

Datadog beats Locafy on 13 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 Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.