Pintec Technology (NASDAQ:PT) and DigitalOcean (NASDAQ:DOCN) Head to Head Analysis

Pintec Technology (NASDAQ:PT) and DigitalOcean (NASDAQ:DOCN) are both business services 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.

Earnings and Valuation

This table compares Pintec Technology and DigitalOcean’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pintec Technology	$52.72 million	0.17	-$11.12 million	N/A	N/A
DigitalOcean	$712.48 million	3.72	$19.41 million	$0.53	54.91

DigitalOcean has higher revenue and earnings than Pintec Technology.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pintec Technology	0	0	0	0	N/A
DigitalOcean	1	4	5	0	2.40

DigitalOcean has a consensus price target of $37.78, suggesting a potential upside of 29.82%. Given DigitalOcean’s higher possible upside, analysts plainly believe DigitalOcean is more favorable than Pintec Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pintec Technology	N/A	N/A	N/A
DigitalOcean	7.01%	-26.29%	5.49%

Institutional & Insider Ownership

6.6% of Pintec Technology shares are held by institutional investors. Comparatively, 49.8% of DigitalOcean shares are held by institutional investors. 4.1% of Pintec Technology shares are held by insiders. Comparatively, 0.7% of DigitalOcean shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Pintec Technology has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Summary

DigitalOcean beats Pintec Technology on 9 of the 11 factors compared between the two stocks.

About Pintec Technology

Pintec Technology Holdings Limited, together with its subsidiaries, operates an online technology platform that enables financial services in the People's Republic of China. The company connects business partners and financial partners on its platform and enables them to provide financial services to end users. Its technology platform's financial services include assistance for borrowers to obtain loans from third party investors and various financial partners; a lending solution for borrowers who want to finance online purchases or who have personal or business installment loan requests; and a wealth management and insurance product distribution solution for asset management and insurance companies to facilitate the sales of products. The company was founded in 2012 and is headquartered in Beijing, the People's Republic of China.

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.