DigitalOcean Holdings, Inc. (DOCN) vs GitLab Inc. (GTLB)

DigitalOcean Holdings, Inc. and GitLab Inc. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. and GitLab Inc. are of similar size ($8.3B and $8.2B). GitLab Inc. has negative trailing earnings, so its P/E is not meaningful; DigitalOcean Holdings, Inc. trades at 171×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 27.6% against 23.0%. DigitalOcean Holdings, Inc. has the higher net margin (3.11% vs −4.99%) and the higher return on invested capital (4.91% vs 0.00%). Across the 19 metrics below, DigitalOcean Holdings, Inc. leads on 11 and GitLab Inc. on 8.

Valuation

Metric DOCN GTLB Software Infrastructure median
P/E 170.97 n/m 24.43
P/S 7.44 7.86 2.81
P/B 5.79 8.54 2.88
Price to free cash flow 180.01 38.82 17.94
EV/EBITDA 24.48 n/m 14.51
EV/Sales 7.75 6.67 2.91
Earnings yield 0.58% (0.65%) 0.00%
Free cash flow yield 0.56% 2.58% 0.49%

Profitability

Metric DOCN GTLB Software Infrastructure median
Gross margin 54.66% 85.75% 57.45%
Operating margin 12.49% (8.55%) 0.00%
Net margin 3.11% (4.99%) 0.00%
Free cash flow margin 4.13% 20.25% 0.00%
Return on equity 5.09% (5.60%) 0.00%
Return on assets 1.25% (3.33%) 0.00%
Return on invested capital 4.91% 0.00% 0.00%

Growth

Metric DOCN GTLB Software Infrastructure median
Revenue growth (TTM) 27.63% 22.99% 14.28%
EPS growth (last fiscal year) 183.15% (1,600.00%) 18.26%
Revenue growth, 5-year CAGR 23.14% 44.39% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCN GTLB Software Infrastructure median
Debt to equity 0.83 0.00 0.02
Current ratio 1.15 2.41 1.53
Net debt to EBITDA 3.87 101.14 0.05

Dividend

Metric DOCN GTLB Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric DOCN GTLB Software Infrastructure median
Market cap 8.34b 8.16b 661.51m

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