Head-To-Head Comparison: DigitalOcean (NASDAQ:DOCN) vs. Grom Social Enterprises (NASDAQ:GROM)

DigitalOcean (NASDAQ:DOCN – Get Rating) and Grom Social Enterprises (NASDAQ:GROM – Get Rating) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Analyst Ratings

This is a summary of current ratings for DigitalOcean and Grom Social Enterprises, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalOcean	2	3	7	0	2.42
Grom Social Enterprises	0	0	1	0	3.00

DigitalOcean currently has a consensus price target of $40.54, indicating a potential upside of 18.88%. Grom Social Enterprises has a consensus price target of $1.50, indicating a potential upside of 128.24%. Given Grom Social Enterprises’ stronger consensus rating and higher possible upside, analysts clearly believe Grom Social Enterprises is more favorable than DigitalOcean.

Insider & Institutional Ownership

52.0% of DigitalOcean shares are owned by institutional investors. 4.1% of DigitalOcean shares are owned by company insiders. Comparatively, 0.5% of Grom Social Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

DigitalOcean has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Grom Social Enterprises has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares DigitalOcean and Grom Social Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalOcean	-4.21%	-2.36%	-0.19%
Grom Social Enterprises	-214.31%	-45.14%	-32.19%

Valuation & Earnings

This table compares DigitalOcean and Grom Social Enterprises’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalOcean	$576.32 million	5.74	-$24.28 million	($0.23)	-148.25
Grom Social Enterprises	$6.30 million	0.55	-$10.15 million	N/A	N/A

Grom Social Enterprises has lower revenue, but higher earnings than DigitalOcean.

Summary

DigitalOcean beats Grom Social Enterprises on 8 of the 12 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 Grom Social Enterprises

(Get Rating)

Grom Social Enterprises, Inc. owns and operates social media platform for kids. It also offers animation, network monitoring and security solutions, nutritional services, and mobile parenting application through its subsidiaries. The company was founded by Zach Marks on October 6, 2009 and is headquartered in Boca Raton, FL.