VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

Datadog, Inc. vs Xero Limited

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Datadog, Inc.

DDOG · NASDAQ

Market cap (USD)$46.9B
Gross margin (TTM)79.9%
Operating margin (TTM)-1.4%
Net margin (TTM)3.3%
SectorTechnology
IndustrySoftware - Application
CountryUS
Data as of2025-12-28
Moat score
63/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Datadog, Inc.'s moat claims, evidence, and risks.

View DDOG analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorTechnology
Industry
CountryNZ
Data as of2026-01-02
Moat score
71/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Xero Limited's moat claims, evidence, and risks.

View XRO analysis

Comparison highlights

  • Moat score gap: Xero Limited leads (71 / 100 vs 63 / 100 for Datadog, Inc.).
  • Moat breadth: Datadog, Inc. has 7 moat types across 4 domains; Xero Limited has 7 across 3.

Primary market context

Datadog, Inc.

Observability Platform

Market

Cloud observability / monitoring & analytics (metrics, logs, traces, RUM)

Geography

Global

Customer

Enterprise and mid-market (DevOps, SRE, engineering)

Role

SaaS platform vendor

Xero Limited

Core Accounting Subscription Platform

Market

Cloud accounting software for small businesses and their advisors

Geography

Global

Customer

SMB; accountants & bookkeepers

Role

Software platform (SaaS)

Side-by-side metrics

Datadog, Inc.
Xero Limited
Ticker / Exchange
DDOG - NASDAQ
XRO - Australian Securities Exchange
Market cap (USD)
$46.9B
n/a
Gross margin (TTM)
79.9%
n/a
Operating margin (TTM)
-1.4%
n/a
Net margin (TTM)
3.3%
n/a
Sector
Technology
Technology
Industry
Software - Application
n/a
HQ country
US
NZ
Primary segment
Observability Platform
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
63 / 100
71 / 100
Moat domains
Demand, Network, Supply, Legal
Demand, Network, Financial
Last update
2025-12-28
2026-01-02

Moat coverage

Shared moat types

Suite BundlingData Workflow LockinEcosystem Complements

Datadog, Inc. strengths

Data Network EffectsOperational ExcellenceBrand TrustCompliance Advantage

Xero Limited strengths

Switching Costs GeneralTwo Sided NetworkBenchmark Pricing PowerInteroperability Hub

Segment mix

Datadog, Inc. segments

Full profile >

Observability Platform

Oligopoly

n/a

Cloud Security Platform

Competitive

n/a

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.