Head to Head Survey: DigitalOcean (NASDAQ:DOCN) vs. DoubleVerify (NYSE:DV)

DoubleVerify (NYSE:DV) and DigitalOcean (NASDAQ:DOCN) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional and Insider Ownership

97.3% of DoubleVerify shares are owned by institutional investors. Comparatively, 49.8% of DigitalOcean shares are owned by institutional investors. 3.0% of DoubleVerify shares are owned by insiders. Comparatively, 0.7% of DigitalOcean shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares DoubleVerify and DigitalOcean’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$572.54 million	5.69	$71.47 million	$0.38	49.87
DigitalOcean	$692.88 million	4.24	$19.41 million	$0.53	60.89

DoubleVerify has higher earnings, but lower revenue than DigitalOcean. DoubleVerify is trading at a lower price-to-earnings ratio than DigitalOcean, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DoubleVerify has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for DoubleVerify and DigitalOcean, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	1	5	15	0	2.67
DigitalOcean	1	5	5	0	2.36

DoubleVerify presently has a consensus target price of $34.05, suggesting a potential upside of 79.70%. DigitalOcean has a consensus target price of $38.00, suggesting a potential upside of 17.76%. Given DoubleVerify’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DoubleVerify is more favorable than DigitalOcean.

Profitability

This table compares DoubleVerify and DigitalOcean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	11.25%	6.46%	5.58%
DigitalOcean	7.01%	-26.29%	5.49%

Summary

DoubleVerify beats DigitalOcean on 10 of the 14 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

About DigitalOcean

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC). The company also provides platform-as-a-service (PaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as software-as-a-service (SaaS), including managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. In addition, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU virtual machines for scaling AI applications; Notebooks, a simple cloud workspace that runs on GPUs that provides a managed interactive development environment for exploring data, and training and building machine learning models; and Deployments for deploying their machine learning model as an API endpoint. The company's customers include software engineers, researchers, data scientists, system administrators, students, and hobbyists. Its customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and AI/ML applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.