Blue Sphere (OTCMKTS:BLSP) versus DigitalOcean (NASDAQ:DOCN) Financial Analysis

DigitalOcean (NASDAQ:DOCNGet Rating) and Blue Sphere (OTCMKTS:BLSPGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for DigitalOcean and Blue Sphere, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DigitalOcean 0 1 8 0 2.89
Blue Sphere 0 0 0 0 N/A

DigitalOcean presently has a consensus price target of $63.50, suggesting a potential upside of 29.99%. Given DigitalOcean’s higher probable upside, analysts plainly believe DigitalOcean is more favorable than Blue Sphere.

Profitability

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

Net Margins Return on Equity Return on Assets
DigitalOcean -7.42% -5.00% -2.33%
Blue Sphere N/A N/A N/A

Valuation & Earnings

This table compares DigitalOcean and Blue Sphere’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DigitalOcean $428.56 million 12.09 -$19.50 million ($0.32) -152.65
Blue Sphere N/A N/A N/A N/A N/A

Blue Sphere has lower revenue, but higher earnings than DigitalOcean.

Volatility & Risk

DigitalOcean has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Blue Sphere has a beta of -8.37, indicating that its share price is 937% less volatile than the S&P 500.

Institutional and Insider Ownership

62.0% of DigitalOcean shares are owned by institutional investors. 8.1% of Blue Sphere shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

DigitalOcean beats Blue Sphere on 5 of the 9 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 Blue Sphere (Get Rating)

Blue Sphere Corp. transforms millions of tons of agricultural, municipal and industrial waste into clean energy and other by-products. The company was founded on July 17, 2007 and is headquartered in Charlotte, NC.

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