DigitalOcean (NASDAQ:DOCN – Get Rating) and Sify Technologies (NASDAQ:SIFY – Get Rating) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares DigitalOcean and Sify Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DigitalOcean | -4.21% | -2.36% | -0.19% |
| Sify Technologies | 3.11% | 13.28% | 3.95% |
Institutional & Insider Ownership
52.0% of DigitalOcean shares are held by institutional investors. Comparatively, 1.2% of Sify Technologies shares are held by institutional investors. 4.1% of DigitalOcean shares are held by company insiders. Comparatively, 77.0% of Sify Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Analyst Recommendations
This is a breakdown of current ratings and price targets for DigitalOcean and Sify Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DigitalOcean | 2 | 4 | 6 | 0 | 2.33 |
| Sify Technologies | 0 | 0 | 0 | 0 | N/A |
DigitalOcean currently has a consensus price target of $40.54, suggesting a potential upside of 17.20%. Given DigitalOcean’s higher possible upside, research analysts plainly believe DigitalOcean is more favorable than Sify Technologies.
Earnings & Valuation
This table compares DigitalOcean and Sify Technologies’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DigitalOcean | $576.32 million | 5.82 | -$24.28 million | ($0.23) | -150.38 |
| Sify Technologies | $362.79 million | 0.71 | $16.59 million | $0.14 | 10.00 |
Sify Technologies has lower revenue, but higher earnings than DigitalOcean. DigitalOcean is trading at a lower price-to-earnings ratio than Sify Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Sify Technologies beats DigitalOcean on 8 of the 13 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. 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 Sify Technologies
Sify Technologies Ltd. engages in the provision of integrated Internet, network, and electronic commerce services in India. It operates through the following segments: Network-centric Services, and Data Center-centric Information Technology Services. The Network-centric Services segment includes domestic data, international data wholesale voice, and network managed services. The Data Center-centric Information Technology Services segment comprises of data center; cloud and managed; technology integration, and applications integration services. The company was founded on December 12, 1995 and is headquartered in Chennai, India.
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