DigitalOcean Holdings, Inc. (DOCN) vs SailPoint, Inc. (SAIL)

DigitalOcean Holdings, Inc. and SailPoint, Inc. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. is the larger, with a market value of $16.7B against $12.8B — 1.3× the size. SailPoint, Inc. has negative trailing earnings, so its P/E is not meaningful; DigitalOcean Holdings, Inc. trades at 55.2×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 21.4% against 20.1%. DigitalOcean Holdings, Inc. has the higher net margin (23.3% vs −16.9%) and the higher return on invested capital (6.10% vs −2.10%). Across the 18 metrics below, DigitalOcean Holdings, Inc. leads on 11 and SailPoint, Inc. on 7.

Valuation

Metric DOCN SAIL Software Infrastructure median
P/E 55.24 n/m 28.02
P/S 14.46 10.06 3.07
P/B 15.71 1.71 3.36
Price to free cash flow n/m 73.42 17.12
EV/EBITDA 47.30 286.97 14.91
EV/Sales 15.05 10.67 3.03
Earnings yield 1.81% (1.65%) 0.13%
Free cash flow yield (0.03%) 1.36% 1.15%

Profitability

Metric DOCN SAIL Software Infrastructure median
Gross margin 57.22% 66.22% 61.23%
Operating margin 14.80% (18.92%) 0.00%
Net margin 23.27% (16.92%) 0.00%
Free cash flow margin (0.44%) 13.70% 1.67%
Return on equity 62.27% (2.88%) 0.59%
Return on assets 9.71% (2.62%) 0.00%
Return on invested capital 6.10% (2.10%) 0.00%

Growth

Metric DOCN SAIL Software Infrastructure median
Revenue growth (TTM) 21.41% 20.13% 13.41%
EPS growth (last fiscal year) 183.15% 95.82% —
Revenue growth, 5-year CAGR 23.14% — 15.81%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DOCN SAIL Software Infrastructure median
Debt to equity 1.47 0.00 0.06
Current ratio 1.31 1.23 1.55
Net debt to EBITDA 3.87 8.93 0.08

Dividend

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

Size

Metric DOCN SAIL Software Infrastructure median
Market cap 16.69b 12.75b 835.96m

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