Critical Analysis: Agora (NASDAQ:API) & Datadog (NASDAQ:DDOG)

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

Institutional and Insider Ownership

14.0% of Agora shares are held by institutional investors. Comparatively, 42.1% of Datadog shares are held by institutional investors. 14.6% of Agora shares are held by company insiders. Comparatively, 26.1% of Datadog shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Agora and Datadog’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agora N/A N/A N/A
Datadog 0.73% 0.75% 0.50%

Analyst Ratings

This is a summary of current ratings for Agora and Datadog, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agora 0 0 0 0 N/A
Datadog 1 8 10 0 2.47

Datadog has a consensus price target of $94.00, suggesting a potential downside of 16.34%. Given Datadog’s higher possible upside, analysts clearly believe Datadog is more favorable than Agora.

Earnings and Valuation

This table compares Agora and Datadog’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agora $64.43 million 64.68 -$6.18 million N/A N/A
Datadog $362.78 million 93.95 -$16.71 million ($0.15) -749.07

Agora has higher earnings, but lower revenue than Datadog.

Summary

Datadog beats Agora on 9 of the 10 factors compared between the two stocks.

About Agora

Agora, Inc. provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People's Republic of China, the United States, and internationally. Its RTE-PaaS offers developers with software tools to embed real-time video, voice, and messaging functionalities into their applications. The company's enterprise-grade products include Real-Time Video, Real-Time Voice, Live Interactive Video and Audio Streaming, Real-Time Messaging, Real-Time Recording, Real-Time Streaming Acceleration, and various use case products that serves as building blocks for developers to embed the respective functions in their applications. It also provides solutions in the areas of social, education, entertainment, gaming, enterprise, financial Services, healthcare, and Internet of Things; and offers customer support services. The company's real-time engagement products are delivered through its Software-Defined Real-Time Network, which is a virtual network overlay on top of the public internet. Agora, Inc. was founded in 1981 and is headquartered in Shanghai, China.

About Datadog

Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide real-time observability of customers technology stack. The company was founded in 2010 and is headquartered in New York, New York.

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