DigitalOcean Holdings, Inc. (DOCN) vs SentinelOne, Inc. (S)

DigitalOcean Holdings, Inc. and SentinelOne, Inc. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. is the larger, with a market value of $10.6B against $8.0B — 1.3× the size. SentinelOne, Inc. has negative trailing earnings, so its P/E is not meaningful; DigitalOcean Holdings, Inc. trades at 215×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 27.6% against 21.1%. DigitalOcean Holdings, Inc. has the higher net margin (3.11% vs −31.0%) and the higher return on invested capital (8.10% vs −25.5%). Across the 19 metrics below, DigitalOcean Holdings, Inc. leads on 11 and SentinelOne, Inc. on 8.

Valuation

Metric DOCN S Software Infrastructure median
P/E 214.81 n/m 26.15
P/S 9.38 7.18 2.87
P/B 7.30 5.45 2.94
Price to free cash flow 169.60 255.67 17.26
EV/EBITDA 31.58 n/m 15.00
EV/Sales 10.02 6.60 2.95
Earnings yield 0.47% (4.37%) 0.00%
Free cash flow yield 0.59% 0.39% 0.39%

Profitability

Metric DOCN S Software Infrastructure median
Gross margin 54.66% 72.54% 59.21%
Operating margin 12.49% (29.46%) 0.00%
Net margin 3.11% (30.95%) 0.00%
Free cash flow margin 34.04% 2.81% 0.00%
Return on equity 5.09% (23.01%) 0.00%
Return on assets 1.25% (14.37%) 0.00%
Return on invested capital 8.10% (25.50%) 0.00%

Growth

Metric DOCN S Software Infrastructure median
Revenue growth (TTM) 27.63% 21.09% 13.57%
EPS growth (last fiscal year) 183.15% (48.91%) 20.22%
Revenue growth, 5-year CAGR 23.14% 60.83% 16.02%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCN S Software Infrastructure median
Debt to equity 0.22 0.00 0.02
Current ratio 1.15 1.45 1.54
Net debt to EBITDA 3.87 3.34 0.05

Dividend

Metric DOCN S Software Infrastructure median
Dividend yield — — 1.09%
Payout ratio — — 0.30

Size

Metric DOCN S Software Infrastructure median
Market cap 10.64b 8.04b 655.75m

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