DigitalOcean (NYSE:DOCN – Get Free Report) and Cycurion (NASDAQ:CYCU – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Risk & Volatility
DigitalOcean has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Cycurion has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for DigitalOcean and Cycurion, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DigitalOcean | 0 | 3 | 12 | 2 | 2.94 |
| Cycurion | 1 | 1 | 1 | 0 | 2.00 |
Profitability
This table compares DigitalOcean and Cycurion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DigitalOcean | 23.26% | 31.01% | 5.76% |
| Cycurion | -98.83% | -98.55% | -46.19% |
Institutional and Insider Ownership
49.8% of DigitalOcean shares are owned by institutional investors. Comparatively, 6.6% of Cycurion shares are owned by institutional investors. 1.0% of DigitalOcean shares are owned by insiders. Comparatively, 4.6% of Cycurion shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares DigitalOcean and Cycurion”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DigitalOcean | $901.43 million | 16.82 | $259.26 million | $2.19 | 66.32 |
| Cycurion | $15.13 million | 0.69 | -$23.67 million | ($24.64) | -0.13 |
DigitalOcean has higher revenue and earnings than Cycurion. Cycurion is trading at a lower price-to-earnings ratio than DigitalOcean, indicating that it is currently the more affordable of the two stocks.
Summary
DigitalOcean beats Cycurion on 13 of the 15 factors compared between the two stocks.
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.
About Cycurion
Cycurion is a global leading provider of Network Communications and Information Technology Security Solutions. Our mission is to develop and deliver world-class, cutting-edge solutions for our clients, regardless of size or complication, expressly optimizing your IT environment to meet the business need and to keep projects on track and on budget.
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