Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Datadog, Inc. or Palantir Technologies Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Datadog, Inc. and Palantir Technologies Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Datadog, Inc. and Palantir Technologies Inc.

Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company’s products comprise infrastructure and application performance monitoring, log management, observability pipelines, synthetics, real user monitoring, product analytics, continuous profiler, database monitoring, data observability, LLM observability, error tracking, network monitoring, incident response, workflow automation and App builder, event management, bits AI SRE, cloud cost management, cloud security, code security, cloud SIEM, threat management, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. It provides Palantir Gotham integrates with other platforms for defense offerings which enables users to see, understand, and act in the modern battlespace; operations centers to the tactical edge; integrating data from domains and sensors in near real-time; and situational awareness and accelerating operational decision-making, as well as facilitates the hand-off between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. The company also offers Palantir Foundry, a platform that helps organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform that provides unified access to open-source, self-hosted, and commercial large language models (LLMs) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations’ actions and processes into tools for humans and LLM-driven agents. The company also has a strategic partnership with Ondas Inc. to develop and deploy AI-enabled operational capabilities to scale stratospheric, aerial, and land-based ISR missions. The company has a strategic collaboration with NVIDIA to deliver an intelligent engine for running NVIDIA AI and Nemotron open models in sovereign environments. The company was incorporated in 2003 and is headquartered in Aventura, Florida.

Latest Software and Datadog, Inc., Palantir Technologies Inc. Stock News

As of July 2, 2026, Datadog, Inc. had a $92.7 billion market capitalization, compared to the Software median of $1.2 million. Datadog, Inc.’s stock is up 91.5% in 2026, up 17.8% in the previous five trading days and up 96.75% in the past year.

Currently, Datadog, Inc.’s price-earnings ratio is 683.4. Datadog, Inc.’s trailing 12-month revenue is $3.7 billion with a 3.7% net profit margin. Year-over-year quarterly sales growth most recently was 32.1%. Analysts expect adjusted earnings to reach $2.421 per share for the current fiscal year. Datadog, Inc. does not currently pay a dividend.

As of July 2, 2026, Palantir Technologies Inc. had a $310.0 billion market cap, putting it in the 99th percentile of all stocks. Palantir Technologies Inc.’s stock is down 27.3% in 2026, up 20.5% in the previous five trading days and down 1.06% in the past year.

Currently, Palantir Technologies Inc.’s price-earnings ratio is 145.3. Palantir Technologies Inc.’s trailing 12-month revenue is $5.2 billion with a 43.7% net profit margin. Year-over-year quarterly sales growth most recently was 84.7%. Analysts expect adjusted earnings to reach $1.476 per share for the current fiscal year. Palantir Technologies Inc. does not currently pay a dividend.

How We Compare Datadog, Inc. and Palantir Technologies Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Datadog, Inc. and Palantir Technologies Inc.’s stock grades to see how they measure up against one another.

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Datadog, Inc. and Palantir Technologies Inc. Stock Value Grades

Company	Ticker	Value
Datadog, Inc.	DDOG	F
Palantir Technologies Inc.	PLTR	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Datadog, Inc. has a Value Score of 2, which is Ultra Expensive. Palantir Technologies Inc. has a Value Score of 1, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Datadog, Inc. or Palantir Technologies Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Datadog, Inc. or Palantir Technologies Inc. is the better investment when it comes to value.

Datadog, Inc. and Palantir Technologies Inc. Growth Grades

Company	Ticker	Growth
Datadog, Inc.	DDOG	B
Palantir Technologies Inc.	PLTR	B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Datadog, Inc. has a Growth Score of 69, which is Strong. Palantir Technologies Inc. has a Growth Score of 69, which is Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Datadog, Inc. and Palantir Technologies Inc. have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Datadog, Inc. and Palantir Technologies Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Datadog, Inc.	DDOG	B
Palantir Technologies Inc.	PLTR	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Datadog, Inc. has a Earnings Estimate Score of 67, which is Positive. Palantir Technologies Inc. has a Earnings Estimate Score of 78, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Datadog, Inc. and Palantir Technologies Inc. have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Datadog, Inc. or Palantir Technologies Inc. is a better fit.

Other Datadog, Inc. and Palantir Technologies Inc. Grades

In addition to Estimate Revisions, Growth and Value, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Datadog, Inc. and Palantir Technologies Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Datadog, Inc. or Palantir Technologies Inc. Stock?

Overall, Datadog, Inc. stock has a Value Score of 2, Growth Score of 69 and Estimate Revisions Score of 67.

Palantir Technologies Inc. stock has a Value Score of 1, Growth Score of 69 and Estimate Revisions Score of 78.

Comparing Datadog, Inc. and Palantir Technologies Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.