DigitalOcean Holdings, Inc. (DOCN) vs Zeta Global Holdings Corp. (ZETA)

DigitalOcean Holdings, Inc. and Zeta Global Holdings Corp. are both Software Infrastructure companies. DigitalOcean Holdings, Inc. is the larger, with a market value of $10.6B against $9.4B — 1.1× the size. DigitalOcean Holdings, Inc. trades at the lower P/E: 206× against 238×. Zeta Global Holdings Corp. grew revenue faster over the last twelve months: 41.0% against 27.6%. DigitalOcean Holdings, Inc. has the higher net margin (3.11% vs 2.30%) and the higher return on invested capital (4.91% vs 4.29%). Across the 21 metrics below, Zeta Global Holdings Corp. leads on 12 and DigitalOcean Holdings, Inc. on 9.

Valuation

Metric DOCN ZETA Software Infrastructure median
P/E 206.00 238.38 25.43
P/S 8.97 5.29 2.76
P/B 6.98 9.14 2.95
Price to free cash flow 216.90 38.67 18.61
EV/EBITDA 29.30 60.61 14.12
EV/Sales 9.27 5.23 2.90
Earnings yield 0.49% 0.42% 0.00%
Free cash flow yield 0.46% 2.59% 0.40%

Profitability

Metric DOCN ZETA Software Infrastructure median
Gross margin 54.66% 59.51% 59.23%
Operating margin 12.49% 3.58% 0.00%
Net margin 3.11% 2.30% 0.00%
Free cash flow margin 4.13% 13.67% 0.00%
Return on equity 5.09% 4.71% 0.00%
Return on assets 1.25% 2.86% 0.00%
Return on invested capital 4.91% 4.29% 0.00%

Growth

Metric DOCN ZETA Software Infrastructure median
Revenue growth (TTM) 27.63% 40.96% 14.80%
EPS growth (last fiscal year) 183.15% 63.16% 17.35%
Revenue growth, 5-year CAGR 23.14% 28.80% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCN ZETA Software Infrastructure median
Debt to equity 0.83 0.24 0.02
Current ratio 1.15 2.30 1.53
Net debt to EBITDA 3.87 (1.58) 0.05

Dividend

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

Size

Metric DOCN ZETA Software Infrastructure median
Market cap 10.63b 9.36b 647.66m

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