DigitalOcean (NYSE:DOCN – Get Free Report) and Trump Media & Technology Group (NASDAQ:DJT – Get Free Report) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Profitability
This table compares DigitalOcean and Trump Media & Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DigitalOcean | 10.86% | -43.11% | 7.64% |
| Trump Media & Technology Group | N/A | -103.05% | -75.54% |
Valuation and Earnings
This table compares DigitalOcean and Trump Media & Technology Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DigitalOcean | $756.56 million | 5.43 | $19.41 million | $0.85 | 52.38 |
| Trump Media & Technology Group | N/A | N/A | -$21.89 million | N/A | N/A |
Volatility and Risk
DigitalOcean has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Trump Media & Technology Group has a beta of 5.16, suggesting that its stock price is 416% more volatile than the S&P 500.
Institutional & Insider Ownership
49.8% of DigitalOcean shares are held by institutional investors. Comparatively, 4.3% of Trump Media & Technology Group shares are held by institutional investors. 0.7% of DigitalOcean shares are held by company insiders. Comparatively, 14.8% of Trump Media & Technology Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for DigitalOcean and Trump Media & Technology Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DigitalOcean | 0 | 6 | 6 | 0 | 2.50 |
| Trump Media & Technology Group | 0 | 0 | 0 | 0 | 0.00 |
DigitalOcean currently has a consensus price target of $42.73, suggesting a potential downside of 4.04%. Given DigitalOcean’s stronger consensus rating and higher probable upside, research analysts plainly believe DigitalOcean is more favorable than Trump Media & Technology Group.
Summary
DigitalOcean beats Trump Media & Technology Group on 9 of the 11 factors compared between the two stocks.
About DigitalOcean
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC). The company also provides platform-as-a-service (PaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as software-as-a-service (SaaS), including managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. In addition, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU virtual machines for scaling AI applications; Notebooks, a simple cloud workspace that runs on GPUs that provides a managed interactive development environment for exploring data, and training and building machine learning models; and Deployments for deploying their machine learning model as an API endpoint. The company’s customers include software engineers, researchers, data scientists, system administrators, students, and hobbyists. Its customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and AI/ML applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.
About Trump Media & Technology Group
Trump Media & Technology Group Corp. operates as a social media and technology company. Its brands include TRUTH Social, TMTG+ and TMTG News. The company is headquartered in Sarasota, FL.
Receive News & Ratings for DigitalOcean Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DigitalOcean and related companies with MarketBeat.com's FREE daily email newsletter.
