DigitalOcean Holdings, Inc. (DOCN) vs GoDaddy Inc. (GDDY)

DigitalOcean Holdings, Inc. and GoDaddy Inc. are both Software Infrastructure companies. GoDaddy Inc. is the larger, with a market value of $13.6B against $10.6B — 1.3× the size. GoDaddy Inc. trades at the lower P/E: 15.5× against 206×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 27.6% against 6.38%. GoDaddy Inc. has the higher net margin (18.6% vs 3.11%) and the higher return on invested capital (33.1% vs 4.91%). Across the 20 metrics below, GoDaddy Inc. leads on 15 and DigitalOcean Holdings, Inc. on 5.

Valuation

Metric DOCN GDDY Software Infrastructure median
P/E 206.00 15.52 25.43
P/S 8.97 2.76 2.76
P/B 6.98 n/m 2.95
Price to free cash flow 216.90 8.20 18.61
EV/EBITDA 29.30 12.02 14.12
EV/Sales 9.27 3.27 2.90
Earnings yield 0.49% 6.44% 0.00%
Free cash flow yield 0.46% 12.20% 0.40%

Profitability

Metric DOCN GDDY Software Infrastructure median
Gross margin 54.66% 63.75% 59.23%
Operating margin 12.49% 25.72% 0.00%
Net margin 3.11% 18.56% 0.00%
Free cash flow margin 4.13% 33.66% 0.00%
Return on equity 5.09% (4,091.97%) 0.00%
Return on assets 1.25% 12.10% 0.00%
Return on invested capital 4.91% 33.14% 0.00%

Growth

Metric DOCN GDDY Software Infrastructure median
Revenue growth (TTM) 27.63% 6.38% 14.80%
EPS growth (last fiscal year) 183.15% (3.57%) 17.35%
Revenue growth, 5-year CAGR 23.14% 8.34% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCN GDDY Software Infrastructure median
Debt to equity 0.83 (27.17) 0.02
Current ratio 1.15 0.61 1.53
Net debt to EBITDA 3.87 2.17 0.05

Dividend

Metric DOCN GDDY Software Infrastructure median
Dividend yield — — 1.12%
Payout ratio — — 0.31

Size

Metric DOCN GDDY Software Infrastructure median
Market cap 10.63b 13.62b 647.66m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack