Critical review: DigitalOcean (NASDAQ: DOCN) and CF Acquisition Corp. VI (NASDAQ: CFVI)

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DigitalOcean (NASDAQ:DOCN – Get Rating) and CF Acquisition Corp. VI (NASDAQ:CFVI – Get Rating) are both IT and technology companies, but which is the better company? We’ll compare the two companies based on earnings strength, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Notes

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

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
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 possible higher upside, equity research analysts clearly believe that DigitalOcean is more favorable than CF Acquisition Corp. VI.

Insider and Institutional Ownership

62.0% of DigitalOcean shares are held by institutional investors. In comparison, 22.1% of CF Acquisition Corp. shares. VI are held by institutional investors. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of DigitalOcean and CF Acquisition Corp. VI.

Gross revenue Price/sales ratio Net revenue 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 revenues, but higher profits than DigitalOcean.

Profitability

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

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 defeats CF Acquisition Corp. VI on 5 of the 8 factors compared between the two actions.

About Digital Ocean (Get an assessment)

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 businesses. The company offers infrastructure solutions for compute, storage and networking, and enables developers to extend its cloud-native capabilities 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 across various 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, etc. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About CF Acquisition Corp. VII (Get an assessment)

CF Acquisition Corp. VI does not carry on any significant activities. It focuses on completing a merger, stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or several companies in financial services, technology, real estate, healthcare and biotechnology. The company was incorporated in 2020 and is located in New York, New York.



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