Check Point Software Technologies Ltd. (CHKP) vs DigitalOcean Holdings, Inc. (DOCN)

Check Point Software Technologies Ltd. and DigitalOcean Holdings, Inc. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. is the larger, with a market value of $16.7B against $13.9B — 1.2× the size. Check Point Software Technologies Ltd. trades at the lower P/E: 13.3× against 55.2×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 21.4% against 4.64%. Check Point Software Technologies Ltd. has the higher net margin (37.9% vs 23.3%) and the higher return on invested capital (20.6% vs 6.10%). Across the 21 metrics below, Check Point Software Technologies Ltd. leads on 17 and DigitalOcean Holdings, Inc. on 4.

Valuation

Metric CHKP DOCN Software Infrastructure median
P/E 13.26 55.24 28.02
P/S 4.89 14.46 3.07
P/B 4.93 15.71 3.36
Price to free cash flow 12.24 n/m 17.12
EV/EBITDA 15.08 47.30 14.91
EV/Sales 4.78 15.05 3.03
Earnings yield 7.54% 1.81% 0.13%
Free cash flow yield 8.17% (0.03%) 1.15%

Profitability

Metric CHKP DOCN Software Infrastructure median
Gross margin 87.49% 57.22% 61.23%
Operating margin 29.02% 14.80% 0.00%
Net margin 37.93% 23.27% 0.00%
Free cash flow margin 39.91% (0.44%) 1.67%
Return on equity 37.64% 62.27% 0.59%
Return on assets 15.89% 9.71% 0.00%
Return on invested capital 20.61% 6.10% 0.00%

Growth

Metric CHKP DOCN Software Infrastructure median
Revenue growth (TTM) 4.64% 21.41% 13.41%
EPS growth (last fiscal year) 28.95% 183.15% —
Revenue growth, 5-year CAGR 5.71% 23.14% 15.81%
Net income growth, 5-year CAGR 4.54% 0.00% 0.00%

Health

Metric CHKP DOCN Software Infrastructure median
Debt to equity 0.72 1.47 0.06
Current ratio 1.67 1.31 1.55
Net debt to EBITDA (1.14) 3.87 0.08

Dividend

Metric CHKP DOCN Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric CHKP DOCN Software Infrastructure median
Market cap 13.92b 16.69b 835.96m

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