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DOCN vs IT

DOCN
DigitalOcean Holdings, Inc.
BEARISH
Price
$95.21
Market Cap
$9.9B
Sector
Technology
AI Confidence
85%
IT
Gartner, Inc.
BEARISH
Price
$150.12
Market Cap
$10.13B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
DOCN
37.78
IT
15.56
Forward P/E
DOCN
56.59
IT
10.2
P/B Ratio
DOCN
-305.16
IT
33.25
P/S Ratio
DOCN
10.98
IT
1.56
EV/EBITDA
DOCN
35.9
IT
9.31

Profitability

Gross Margin
DOCN
59.86%
IT
68.39%
Operating Margin
DOCN
16.01%
IT
18.98%
Profit Margin
DOCN
28.76%
IT
11.22%
ROE
DOCN
--
IT
86.86%
ROA
DOCN
5.64%
IT
8.86%

Growth

Revenue Growth
DOCN
18.3%
IT
2.2%
Earnings Growth
DOCN
90.1%
IT
-34.2%

Financial Health

Debt/Equity
DOCN
--
IT
10.47
Current Ratio
DOCN
0.69
IT
1.0
Quick Ratio
DOCN
0.6
IT
0.85

Dividends

Dividend Yield
DOCN
--
IT
--
Payout Ratio
DOCN
0.0%
IT
0.0%

AI Verdict

DOCN BEARISH

DigitalOcean exhibits a precarious financial profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a critical liquidity deficit with a current ratio of 0.69. While the stock has seen an extraordinary 1-year price surge of 217.9%, it now trades at a significant premium to its intrinsic value of $74.34 and above the analyst target of $89.92. The combination of negative book value, bearish insider activity from the CFO, and a forward P/E that exceeds the current P/E suggests a valuation peak and potential earnings contraction.

Strengths
Strong gross margins at 59.86%
Consistent history of beating earnings estimates (3/4 last 4 quarters)
Healthy profit margin of 28.76%
Risks
Severe liquidity risk with a current ratio of 0.69
Negative shareholder equity indicated by a Price/Book of -305.16
Bearish insider sentiment with CFO and Officer selling shares
IT BEARISH

Gartner, Inc. (IT) exhibits significant financial instability characterized by a Piotroski F-Score of 4/9 (Stable) and a critical Debt/Equity ratio of 10.47. The stock is trading at a massive premium compared to its Graham Number ($31.31) and Intrinsic Value ($67.55), while experiencing a catastrophic 1-year price decline of 63.9%. Despite a low forward P/E of 10.20, the combination of crashing earnings growth (-34.2% YoY) and extreme leverage makes the current valuation unsustainable.

Strengths
Strong Gross Margins (68.39%)
High Return on Equity (86.86%)
Low Forward P/E ratio (10.20) relative to sector
Risks
Extreme leverage with a Debt/Equity ratio of 10.47
Severe negative earnings growth (-34.2% YoY)
Price is trading significantly above both Graham and Intrinsic value estimates

Compare Another Pair

DOCN vs IT: Head-to-Head Comparison

This page compares DigitalOcean Holdings, Inc. (DOCN) and Gartner, Inc. (IT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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