Critical Review: DigitalOcean (NASDAQ:DOCN) & CF Acquisition Corp. VI (NASDAQ:CFVI)

DigitalOcean (NASDAQ:DOCNGet Rating) and CF Acquisition Corp. VI (NASDAQ:CFVIGet Rating) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for DigitalOcean and CF Acquisition Corp. VI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DigitalOcean 0 1 8 0 2.89
CF Acquisition Corp. VI 0 0 0 0 N/A

DigitalOcean currently has a consensus price target of $63.50, indicating a potential upside of 73.21%. Given DigitalOcean’s higher possible upside, equities research analysts clearly believe DigitalOcean is more favorable than CF Acquisition Corp. VI.

Insider & Institutional Ownership

62.0% of DigitalOcean shares are owned by institutional investors. Comparatively, 22.1% of CF Acquisition Corp. VI shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares DigitalOcean and CF Acquisition Corp. VI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DigitalOcean $428.56 million 9.07 -$19.50 million ($0.32) -114.56
CF Acquisition Corp. VI N/A N/A -$17.91 million N/A N/A

CF Acquisition Corp. VI has lower revenue, but higher earnings than DigitalOcean.

Profitability

This table compares DigitalOcean and CF Acquisition Corp. VI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DigitalOcean -7.42% -5.00% -2.33%
CF Acquisition Corp. VI N/A N/A -5.95%

Summary

DigitalOcean beats CF Acquisition Corp. VI on 5 of the 8 factors compared between the two stocks.

About DigitalOcean (Get Rating)

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company offers infrastructure solutions across compute, storage, and networking, as well as enables developers to extend the native capabilities of its cloud with fully managed application, container, and database offerings. Its users include software engineers, researchers, data scientists, system administrators, students, and hobbyists. The company's 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 others. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About CF Acquisition Corp. VI (Get Rating)

CF Acquisition Corp. VI does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the financial services, technology, real estate, healthcare, and biotech. The company was incorporated in 2020 and is New York, New York.

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