Head to Head Comparison: Yandex (NASDAQ:YNDX) and DigitalOcean (NASDAQ:DOCN)

Yandex (NASDAQ:YNDXGet Rating) and DigitalOcean (NASDAQ:DOCNGet Rating) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Yandex -6.46% -1.26% -0.69%
DigitalOcean -7.42% -5.00% -2.33%

Earnings & Valuation

This table compares Yandex and DigitalOcean’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yandex $4.79 billion 1.40 -$197.40 million ($0.91) -20.81
DigitalOcean $428.56 million 9.89 -$19.50 million ($0.32) -124.90

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

Risk & Volatility

Yandex has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Institutional & Insider Ownership

66.8% of Yandex shares are held by institutional investors. Comparatively, 62.0% of DigitalOcean shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Yandex and DigitalOcean, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yandex 0 0 4 0 3.00
DigitalOcean 0 1 8 0 2.89

Yandex presently has a consensus price target of $83.25, suggesting a potential upside of 339.55%. DigitalOcean has a consensus price target of $63.50, suggesting a potential upside of 58.87%. Given Yandex’s stronger consensus rating and higher possible upside, equities analysts plainly believe Yandex is more favorable than DigitalOcean.

Summary

Yandex beats DigitalOcean on 8 of the 13 factors compared between the two stocks.

About Yandex (Get Rating)

Yandex N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company operates through Search and Portal, Taxi, Yandex.Market, Media Services, Classifieds, and Other Business Units and Initiatives segments. It provides locally relevant search and information services. The company also develops on-demand transportation, delivery, and navigation services and products, as well as operates in the e-commerce, online entertainment, and cloud computing markets to address the needs of customers in Russia and various international markets. In addition, it operates Yandex.Plus, a subscription loyalty program; offers fintech instruments, such as payment and financial services; and advertising services. Further, the company operates classifieds platforms for the sale of used and new cars, motorcycles, commercial vehicles, and spare parts; and sale and rental of apartments, houses, and commercial property for private individuals, developers, and realtors, as well as a long-term apartment rental platform to manage pre-contract rental processes and subsequent administration of the payments. Additionally, it operates Yandex Zen, a social infotainment platform that brings together content creators and users; and Yandex Cloud, a cloud platform that provides infrastructure, storage, machine learning, and development tools to build and enhance cutting-edge digital services and applications for B2B customers and individual developers. The company was founded in 1989 and is based in Schiphol, the Netherlands.

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.

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