Comprehensive Stock Comparison
Compare DigitalOcean Holdings, Inc. (DOCN) vs Palantir Technologies Inc. (PLTR) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PLTR | 56.2% revenue growth vs DOCN's 15.5% |
| Value | DOCN | Lower P/E (56.0x vs 106.7x) |
| Quality / Margins | PLTR | 36.3% net margin vs DOCN's 28.8% |
| Stability / Safety | PLTR | Beta 1.97 vs DOCN's 2.06 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PLTR | +61.6% vs DOCN's +30.8% |
| Efficiency (ROA) | PLTR | 18.3% ROA vs DOCN's 14.1%, ROIC 22.3% vs 15.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
DigitalOcean is a cloud computing platform that provides infrastructure and developer tools primarily for startups, small businesses, and individual developers. It generates revenue through subscription-based cloud services — including compute instances, storage, databases, and networking — with infrastructure-as-a-service accounting for the majority of its income. The company's competitive advantage lies in its developer-friendly simplicity and transparent pricing, which appeals to smaller customers who find larger cloud providers overly complex.
Palantir Technologies builds and operates advanced data analytics platforms that help government agencies and large enterprises integrate, analyze, and act on complex data. It generates revenue primarily through government contracts—particularly with defense and intelligence agencies—and commercial enterprise software subscriptions, with government work historically representing the majority of its business. The company's key advantage lies in its deep expertise in handling sensitive, classified data and its proprietary software platforms that have been battle-tested in national security applications for nearly two decades.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PLTR leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). DOCN leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
PLTR is the larger business by revenue, generating $4.5B annually — 5.0x DOCN's $901M. PLTR is the more profitable business, keeping 36.3% of every revenue dollar as net income compared to DOCN's 28.8%. On growth, PLTR holds the edge at +70.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| RevenueTrailing 12 months | $901M | $4.5B |
| EBITDAEarnings before interest/tax | $345M | $1.4B |
| Net IncomeAfter-tax profit | $259M | $1.6B |
| Free Cash FlowCash after capex | $37M | $2.1B |
| Gross MarginGross profit ÷ Revenue | +59.9% | +82.4% |
| Operating MarginEBIT ÷ Revenue | +17.4% | +31.6% |
| Net MarginNet income ÷ Revenue | +28.8% | +36.3% |
| FCF MarginFCF ÷ Revenue | +4.1% | +47.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +18.3% | +70.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +31.6% | +6.7% |
Valuation Metrics
At 22.2x trailing earnings, DOCN trades at a 90% valuation discount to PLTR's 217.8x P/E. On an enterprise value basis, DOCN's 19.1x EV/EBITDA is more attractive than PLTR's 216.8x.
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| Market CapShares × price | $5.2B | $313.4B |
| Enterprise ValueMkt cap + debt − cash | $5.6B | $312.2B |
| Trailing P/EPrice ÷ TTM EPS | 22.25x | 217.76x |
| Forward P/EPrice ÷ next-FY EPS est. | 55.98x | 106.66x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 19.12x | 216.78x |
| Price / SalesMarket cap ÷ Revenue | 5.72x | 70.02x |
| Price / BookPrice ÷ Book value/share | — | 47.00x |
| Price / FCFMarket cap ÷ FCF | 16.65x | 149.19x |
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), PLTR scores 8/9 vs DOCN's 7/9, reflecting strong financial health.
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| ROE (TTM)Return on equity | — | +21.7% |
| ROA (TTM)Return on assets | +14.1% | +18.3% |
| ROICReturn on invested capital | +15.6% | +22.3% |
| ROCEReturn on capital employed | +11.9% | +21.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | — | 0.03x |
| Net DebtTotal debt minus cash | $476M | -$1.2B |
| Cash & Equiv.Liquid assets | $254M | $1.4B |
| Total DebtShort + long-term debt | $731M | $229M |
| Interest CoverageEBIT ÷ Interest expense | 15.40x | — |
Total Returns (with DRIP)
A $10,000 investment in PLTR five years ago would be worth $55,296 today (with dividends reinvested), compared to $13,191 for DOCN. Over the past 12 months, PLTR leads with a +61.6% total return vs DOCN's +30.8%. The 3-year compound annual growth rate (CAGR) favors PLTR at 159.6% vs DOCN's 20.6% — a key indicator of consistent wealth creation.
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| YTD ReturnYear-to-date | +14.5% | -18.3% |
| 1-Year ReturnPast 12 months | +30.8% | +61.6% |
| 3-Year ReturnCumulative with dividends | +75.3% | +1649.9% |
| 5-Year ReturnCumulative with dividends | +31.9% | +453.0% |
| 10-Year ReturnCumulative with dividends | +31.9% | +1344.1% |
| CAGR (3Y)Annualised 3-year return | +20.6% | +159.6% |
Risk & Volatility
PLTR is the less volatile stock with a 1.97 beta — it tends to amplify market swings less than DOCN's 2.06 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DOCN currently trades 79.6% from its 52-week high vs PLTR's 66.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.06x | 1.97x |
| 52-Week HighHighest price in past year | $70.43 | $207.52 |
| 52-Week LowLowest price in past year | $25.45 | $66.12 |
| % of 52W HighCurrent price vs 52-week peak | +79.6% | +66.1% |
| RSI (14)Momentum oscillator 0–100 | 41.1 | 42.3 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 39.1M |
Analyst Outlook
Wall Street rates DOCN as "Buy" and PLTR as "Hold". Consensus price targets imply 44.8% upside for PLTR (target: $199) vs 17.4% for DOCN (target: $66).
| Metric | DOCNDigitalOcean Hold… | PLTRPalantir Technolo… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $65.83 | $198.71 |
| # AnalystsCovering analysts | 19 | 24 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 21 | Feb 26 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | 100 | 140.73 | +40.7% |
| Palantir Technologi… (PLTR) | 100 | 640.49 | +540.5% |
Palantir Technologi… (PLTR) returned +453% over 5 years vs DigitalOcean Holdin… (DOCN)'s +32%. A $10,000 investment in PLTR 5 years ago would be worth $55,296 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | $203M | $901M | +343.8% |
| Palantir Technologi… (PLTR) | $595M | $4.5B | +651.7% |
DigitalOcean Holdings, Inc.'s revenue grew from $203M (2018) to $901M (2025) — a 23.7% CAGR. Palantir Technologies Inc.'s revenue grew from $595M (2018) to $4.5B (2025) — a 33.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | -17.7% | 28.8% | +262.3% |
| Palantir Technologi… (PLTR) | -97.4% | 36.3% | +137.3% |
DigitalOcean Holdings, Inc.'s net margin went from -18% (2018) to 29% (2025). Palantir Technologies Inc.'s net margin went from -97% (2018) to 36% (2025).
Chart 4P/E Ratio History — 3 Years
| Stock | 2023 | 2025 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | 183.5 | 19.1 | -89.6% |
| Palantir Technologi… (PLTR) | 188.1 | 282.1 | +50.0% |
DigitalOcean Holdings, Inc. has traded in a 19x–184x P/E range over 3 years; current trailing P/E is ~22x. Palantir Technologies Inc. has traded in a 188x–398x P/E range over 3 years; current trailing P/E is ~218x.
Chart 5EPS Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | -0.41 | 2.52 | +714.6% |
| Palantir Technologi… (PLTR) | -0.89 | 0.63 | +170.8% |
DigitalOcean Holdings, Inc.'s EPS grew from $-0.41 (2018) to $2.52 (2025). Palantir Technologies Inc.'s EPS grew from $-0.89 (2018) to $0.63 (2025).
Chart 6Free Cash Flow — 5 Years
DigitalOcean Holdings, Inc. generated $310M FCF in 2025 (+1189% vs 2021). Palantir Technologies Inc. generated $2B FCF in 2025 (+554% vs 2021).
DOCN vs PLTR: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DOCN or PLTR a better buy right now?
DigitalOcean Holdings, Inc. (DOCN) offers the better valuation at 22.2x trailing P/E (56.0x forward), making it the more compelling value choice. Analysts rate DigitalOcean Holdings, Inc. (DOCN) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DOCN or PLTR?
On trailing P/E, DigitalOcean Holdings, Inc. (DOCN) is the cheapest at 22.2x versus Palantir Technologies Inc. at 217.8x. On forward P/E, DigitalOcean Holdings, Inc. is actually cheaper at 56.0x.
03Which is the better long-term investment — DOCN or PLTR?
Over the past 5 years, Palantir Technologies Inc. (PLTR) delivered a total return of +453.0%, compared to +31.9% for DigitalOcean Holdings, Inc. (DOCN). A $10,000 investment in PLTR five years ago would be worth approximately $55K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PLTR returned +1344% versus DOCN's +31.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DOCN or PLTR?
By beta (market sensitivity over 5 years), Palantir Technologies Inc. (PLTR) is the lower-risk stock at 1.97β versus DigitalOcean Holdings, Inc.'s 2.06β — meaning DOCN is approximately 4% more volatile than PLTR relative to the S&P 500.
05Which has better profit margins — DOCN or PLTR?
Palantir Technologies Inc. (PLTR) is the more profitable company, earning 36.3% net margin versus 28.8% for DigitalOcean Holdings, Inc. — meaning it keeps 36.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PLTR leads at 31.6% versus 17.4% for DOCN. At the gross margin level — before operating expenses — PLTR leads at 82.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is DOCN or PLTR more undervalued right now?
On forward earnings alone, DigitalOcean Holdings, Inc. (DOCN) trades at 56.0x forward P/E versus 106.7x for Palantir Technologies Inc. — 50.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PLTR: 44.8% to $198.71.
07Which pays a better dividend — DOCN or PLTR?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is DOCN or PLTR better for a retirement portfolio?
For long-horizon retirement investors, Palantir Technologies Inc. (PLTR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1344% 10Y return). DigitalOcean Holdings, Inc. (DOCN) carries a higher beta of 2.06 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PLTR: +1344%, DOCN: +31.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between DOCN and PLTR?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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