Nexi (OTCMKTS:NEXXY) & DigitalOcean (NYSE:DOCN) Financial Analysis

DigitalOcean (NYSE:DOCN) and Nexi (OTCMKTS:NEXXY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Profitability

This table compares DigitalOcean and Nexi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalOcean	9.30%	-31.71%	6.51%
Nexi	N/A	N/A	N/A

Valuation & Earnings

This table compares DigitalOcean and Nexi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalOcean	$692.88 million	5.84	$19.41 million	$0.72	61.07
Nexi	N/A	N/A	N/A	N/A	N/A

DigitalOcean has higher revenue and earnings than Nexi.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for DigitalOcean and Nexi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalOcean	0	5	5	0	2.50
Nexi	0	0	0	0	N/A

DigitalOcean currently has a consensus price target of $39.44, indicating a potential downside of 10.29%. Given DigitalOcean’s higher possible upside, equities research analysts plainly believe DigitalOcean is more favorable than Nexi.

Institutional & Insider Ownership

49.8% of DigitalOcean shares are held by institutional investors. 0.7% of DigitalOcean shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

DigitalOcean beats Nexi on 7 of the 8 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 Nexi

Nexi S.p.A. provides electronic money and payment services to banks, financial and insurance institutions, merchants, businesses, and public administration in Italy. The company offers acquiring services; configuration, activation, and maintenance of POS terminals; fraud prevention; and dispute management services, as well as customer support services. It also provides a range of issuing services, such as issue, supply, and management of private and corporate payment cards; installation and management of ATM's; clearing services; and digital banking services for the management of current accounts and payments. In addition, the company offers software applications for invoice management and storage, prepaid card reloading, bill payments, and postal payments. Nexi S.p.A. has a strategic agreement with Intesa Sanpaolo S.p.A. to acquire the PBZ Card's merchant business in the Croatian market. The company was founded in 1939 and is based in Milan, Italy.