Critical Contrast: Trump Media & Technology Group (NASDAQ:DJT) versus DigitalOcean (NYSE:DOCN)

Trump Media & Technology Group (NASDAQ:DJT) and DigitalOcean (NYSE:DOCN) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Analyst Ratings

This is a summary of recent recommendations for Trump Media & Technology Group and DigitalOcean, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trump Media & Technology Group	0	0	0	0	0.00
DigitalOcean	0	6	6	0	2.50

DigitalOcean has a consensus target price of $42.73, suggesting a potential downside of 5.55%. Given DigitalOcean’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalOcean is more favorable than Trump Media & Technology Group.

Profitability

This table compares Trump Media & Technology Group and DigitalOcean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trump Media & Technology Group	N/A	-103.05%	-75.54%
DigitalOcean	10.86%	-43.11%	7.64%

Volatility and Risk

Trump Media & Technology Group has a beta of 5.16, meaning that its share price is 416% more volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Earnings and Valuation

This table compares Trump Media & Technology Group and DigitalOcean”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trump Media & Technology Group	$4.13 million	1,593.15	-$21.89 million	N/A	N/A
DigitalOcean	$692.88 million	6.02	$19.41 million	$0.85	53.22

DigitalOcean has higher revenue and earnings than Trump Media & Technology Group.

Insider and Institutional Ownership

4.3% of Trump Media & Technology Group shares are owned by institutional investors. Comparatively, 49.8% of DigitalOcean shares are owned by institutional investors. 14.8% of Trump Media & Technology Group shares are owned by insiders. Comparatively, 0.7% of DigitalOcean shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

DigitalOcean beats Trump Media & Technology Group on 9 of the 12 factors compared between the two stocks.

About Trump Media & Technology Group

Trump Media & Technology Group Corp. operates as a social media and technology company. Its brands include TRUTH Social, TMTG+ and TMTG News. The company is headquartered in Sarasota, FL.

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.