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DOCN vs LFUS

DOCN
DigitalOcean Holdings, Inc.
BEARISH
Price
$95.21
Market Cap
$9.9B
Sector
Technology
AI Confidence
85%
LFUS
Littelfuse, Inc.
NEUTRAL
Price
$382.87
Market Cap
$9.63B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
DOCN
37.78
LFUS
--
Forward P/E
DOCN
56.59
LFUS
25.22
P/B Ratio
DOCN
-305.16
LFUS
3.93
P/S Ratio
DOCN
10.98
LFUS
4.04
EV/EBITDA
DOCN
35.9
LFUS
20.13

Profitability

Gross Margin
DOCN
59.86%
LFUS
38.02%
Operating Margin
DOCN
16.01%
LFUS
14.75%
Profit Margin
DOCN
28.76%
LFUS
-3.0%
ROE
DOCN
--
LFUS
-2.96%
ROA
DOCN
5.64%
LFUS
5.71%

Growth

Revenue Growth
DOCN
18.3%
LFUS
12.2%
Earnings Growth
DOCN
90.1%
LFUS
--

Financial Health

Debt/Equity
DOCN
--
LFUS
0.37
Current Ratio
DOCN
0.69
LFUS
2.69
Quick Ratio
DOCN
0.6
LFUS
1.74

Dividends

Dividend Yield
DOCN
--
LFUS
0.78%
Payout Ratio
DOCN
0.0%
LFUS
60.0%

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
LFUS NEUTRAL

LFUS presents a stable deterministic health profile with a Piotroski F-Score of 5/9 and exceptionally strong liquidity (Current Ratio 2.69). However, the stock is currently trading at its 52-week high following a massive 153% one-year rally, resulting in a stretched valuation with a PEG ratio of 2.46. While the company maintains a stellar 25-quarter earnings beat track record and healthy revenue growth, the current negative net profit margin and ROE are concerning. With a technical trend score of 10/100 and bearish insider activity, the stock appears to be in a consolidation or peak phase.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong liquidity position with a Current Ratio of 2.69 and Quick Ratio of 1.74
Conservative leverage with a low Debt/Equity ratio of 0.37
Risks
Negative net profit margin (-3.01%) and negative ROE (-2.96%)
Overvaluation relative to growth as indicated by a PEG ratio of 2.46
Extreme technical weakness (Trend Score 10/100) suggesting a potential reversal

Compare Another Pair

DOCN vs LFUS: Head-to-Head Comparison

This page compares DigitalOcean Holdings, Inc. (DOCN) and Littelfuse, Inc. (LFUS) 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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