Head-To-Head Comparison: Nexxen International (NASDAQ:NEXN) and DigitalOcean (NASDAQ:DOCN)

DigitalOcean (NASDAQ:DOCN) and Nexxen International (NASDAQ:NEXN) 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.

Risk and Volatility

DigitalOcean has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Earnings and Valuation

This table compares DigitalOcean and Nexxen International’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalOcean	$712.48 million	4.44	$19.41 million	$0.53	65.57
Nexxen International	$331.99 million	1.17	-$21.49 million	($0.13)	-43.23

DigitalOcean has higher revenue and earnings than Nexxen International. Nexxen International is trading at a lower price-to-earnings ratio than DigitalOcean, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

49.8% of DigitalOcean shares are owned by institutional investors. Comparatively, 54.2% of Nexxen International shares are owned by institutional investors. 0.7% of DigitalOcean 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DigitalOcean	7.01%	-26.29%	5.49%
Nexxen International	-3.12%	4.86%	2.96%

Analyst Ratings

This is a summary of current ratings for DigitalOcean and Nexxen International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalOcean	1	5	5	0	2.36
Nexxen International	0	1	3	0	2.75

DigitalOcean currently has a consensus price target of $38.00, indicating a potential upside of 9.35%. Nexxen International has a consensus price target of $7.88, indicating a potential upside of 40.12%. Given Nexxen International’s stronger consensus rating and higher possible upside, analysts clearly believe Nexxen International is more favorable than DigitalOcean.

Summary

DigitalOcean beats Nexxen International on 9 of the 14 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 Nexxen International

Nexxen International Ltd. provides end-to-end software platform that enables advertisers to reach publishers Israel. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024. Nexxen International Ltd. was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.