DigitalOcean Holdings, Inc. (DOCN) vs Gen Digital Inc. (GEN)

DigitalOcean Holdings, Inc. and Gen Digital Inc. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. is the larger, with a market value of $16.7B against $14.0B — 1.2× the size. Gen Digital Inc. trades at the lower P/E: 12.4× against 55.2×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 21.4% against 20.2%. DigitalOcean Holdings, Inc. has the higher net margin (23.3% vs 20.7%) and the lower return on invested capital (6.10% vs 12.9%). Across the 21 metrics below, Gen Digital Inc. leads on 13 and DigitalOcean Holdings, Inc. on 8.

Valuation

Metric DOCN GEN Software Infrastructure median
P/E 55.24 12.43 28.02
P/S 14.46 2.55 3.07
P/B 15.71 4.88 3.36
Price to free cash flow n/m 8.30 17.12
EV/EBITDA 47.30 7.87 14.91
EV/Sales 15.05 4.04 3.03
Earnings yield 1.81% 8.05% 0.13%
Free cash flow yield (0.03%) 12.05% 1.15%

Profitability

Metric DOCN GEN Software Infrastructure median
Gross margin 57.22% 78.01% 61.23%
Operating margin 14.80% 41.68% 0.00%
Net margin 23.27% 20.73% 0.00%
Free cash flow margin (0.44%) 30.71% 1.67%
Return on equity 62.27% 41.94% 0.59%
Return on assets 9.71% 6.58% 0.00%
Return on invested capital 6.10% 12.91% 0.00%

Growth

Metric DOCN GEN Software Infrastructure median
Revenue growth (TTM) 21.41% 20.16% 13.41%
EPS growth (last fiscal year) 183.15% 52.43% —
Revenue growth, 5-year CAGR 23.14% 14.41% 15.81%
Net income growth, 5-year CAGR 0.00% 11.92% 0.00%

Health

Metric DOCN GEN Software Infrastructure median
Debt to equity 1.47 3.07 0.06
Current ratio 1.31 0.47 1.55
Net debt to EBITDA 3.87 2.98 0.08

Dividend

Metric DOCN GEN Software Infrastructure median
Dividend yield — 2.43% 1.53%
Payout ratio 0.00 0.35 0.00

Size

Metric DOCN GEN Software Infrastructure median
Market cap 16.69b 14.00b 835.96m

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