Comprehensive Stock Comparison
Compare Nutanix, Inc. (NTNX) vs DigitalOcean Holdings, Inc. (DOCN) 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 | NTNX | 18.1% revenue growth vs DOCN's 15.5% |
| Value | NTNX | Lower P/E (21.1x vs 56.0x) |
| Quality / Margins | DOCN | 28.8% net margin vs NTNX's 9.9% |
| Stability / Safety | NTNX | Beta 1.25 vs DOCN's 2.06 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DOCN | +30.8% vs NTNX's -50.2% |
| Efficiency (ROA) | DOCN | 14.1% ROA vs NTNX's 8.2%, ROIC 15.6% vs 6.9% |
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
Nutanix provides a hyperconverged infrastructure platform that combines computing, storage, and virtualization into a single software solution. It generates revenue primarily through subscription software licenses — about 90% of total revenue — with the remainder from hardware sales and support services. The company's key advantage is its software-defined architecture that simplifies data center management and enables seamless hybrid cloud operations.
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.
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
DOCN leads in 2 of 6 categories (Profitability & Efficiency, Total Returns). NTNX leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
NTNX is the larger business by revenue, generating $2.7B annually — 3.0x DOCN's $901M. DOCN is the more profitable business, keeping 28.8% of every revenue dollar as net income compared to NTNX's 9.9%. On growth, DOCN holds the edge at +18.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $901M |
| EBITDAEarnings before interest/tax | $288M | $345M |
| Net IncomeAfter-tax profit | $267M | $259M |
| Free Cash FlowCash after capex | $777M | $37M |
| Gross MarginGross profit ÷ Revenue | +87.1% | +59.9% |
| Operating MarginEBIT ÷ Revenue | +8.0% | +17.4% |
| Net MarginNet income ÷ Revenue | +9.9% | +28.8% |
| FCF MarginFCF ÷ Revenue | +28.9% | +4.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.4% | +18.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +89.5% | +31.6% |
Valuation Metrics
At 22.2x trailing earnings, DOCN trades at a 62% valuation discount to NTNX's 58.9x P/E. On an enterprise value basis, DOCN's 19.1x EV/EBITDA is more attractive than NTNX's 45.2x.
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| Market CapShares × price | $10.4B | $5.2B |
| Enterprise ValueMkt cap + debt − cash | $11.1B | $5.6B |
| Trailing P/EPrice ÷ TTM EPS | 58.89x | 22.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.13x | 55.98x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 45.16x | 19.12x |
| Price / SalesMarket cap ÷ Revenue | 4.08x | 5.72x |
| Price / BookPrice ÷ Book value/share | — | — |
| Price / FCFMarket cap ÷ FCF | 13.81x | 16.65x |
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), DOCN scores 7/9 vs NTNX's 6/9, reflecting strong financial health.
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| ROE (TTM)Return on equity | — | — |
| ROA (TTM)Return on assets | +8.2% | +14.1% |
| ROICReturn on invested capital | +6.9% | +15.6% |
| ROCEReturn on capital employed | +12.5% | +11.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | — | — |
| Net DebtTotal debt minus cash | $713M | $476M |
| Cash & Equiv.Liquid assets | $770M | $254M |
| Total DebtShort + long-term debt | $1.5B | $731M |
| Interest CoverageEBIT ÷ Interest expense | 12.48x | 15.40x |
Total Returns (with DRIP)
A $10,000 investment in DOCN five years ago would be worth $13,191 today (with dividends reinvested), compared to $12,465 for NTNX. Over the past 12 months, DOCN leads with a +30.8% total return vs NTNX's -50.2%. The 3-year compound annual growth rate (CAGR) favors DOCN at 20.6% vs NTNX's 10.7% — a key indicator of consistent wealth creation.
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| YTD ReturnYear-to-date | -24.3% | +14.5% |
| 1-Year ReturnPast 12 months | -50.2% | +30.8% |
| 3-Year ReturnCumulative with dividends | +35.5% | +75.3% |
| 5-Year ReturnCumulative with dividends | +24.6% | +31.9% |
| 10-Year ReturnCumulative with dividends | +3.5% | +31.9% |
| CAGR (3Y)Annualised 3-year return | +10.7% | +20.6% |
Risk & Volatility
NTNX is the less volatile stock with a 1.25 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 NTNX's 45.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.25x | 2.06x |
| 52-Week HighHighest price in past year | $83.36 | $70.43 |
| 52-Week LowLowest price in past year | $35.39 | $25.45 |
| % of 52W HighCurrent price vs 52-week peak | +45.9% | +79.6% |
| RSI (14)Momentum oscillator 0–100 | 43.7 | 41.1 |
| Avg Volume (50D)Average daily shares traded | 3.5M | 2.2M |
Analyst Outlook
Wall Street rates NTNX as "Buy" and DOCN as "Buy". Consensus price targets imply 58.2% upside for NTNX (target: $61) vs 17.4% for DOCN (target: $66).
| Metric | NTNXNutanix, Inc. | DOCNDigitalOcean Hold… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $60.55 | $65.83 |
| # AnalystsCovering analysts | 31 | 19 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.0% | +0.1% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 21 | Feb 26 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | 100 | 147.32 | +47.3% |
| DigitalOcean Holdin… (DOCN) | 103.06 | 140.73 | +36.6% |
DigitalOcean Holdin… (DOCN) returned +32% over 5 years vs Nutanix, Inc. (NTNX)'s +25%. A $10,000 investment in DOCN 5 years ago would be worth $13,191 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | $503M | $2.5B | +404.1% |
| DigitalOcean Holdin… (DOCN) | $203M | $901M | +343.8% |
Nutanix, Inc.'s revenue grew from $503M (2016) to $2.5B (2025) — a 19.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | -21.5% | 7.4% | +134.5% |
| DigitalOcean Holdin… (DOCN) | -17.7% | 28.8% | +262.3% |
Nutanix, Inc.'s net margin went from -22% (2016) to 7% (2025).
Chart 4P/E Ratio History — 3 Years
| Stock | 2023 | 2025 | Change |
|---|---|---|---|
| DigitalOcean Holdin… (DOCN) | 183.5 | 19.1 | -89.6% |
DigitalOcean Holdings, Inc. has traded in a 19x–184x P/E range over 3 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | -0.79 | 0.65 | +182.3% |
| DigitalOcean Holdin… (DOCN) | -0.41 | 2.52 | +714.6% |
Nutanix, Inc.'s EPS grew from $-0.79 (2016) to $0.65 (2025).
Chart 6Free Cash Flow — 5 Years
Nutanix, Inc. generated $750M FCF in 2025 (+573% vs 2021). DigitalOcean Holdings, Inc. generated $310M FCF in 2025 (+1189% vs 2021).
NTNX vs DOCN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NTNX or DOCN 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 Nutanix, Inc. (NTNX) a "Buy" — based on 31 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 — NTNX or DOCN?
On trailing P/E, DigitalOcean Holdings, Inc. (DOCN) is the cheapest at 22.2x versus Nutanix, Inc. at 58.9x. On forward P/E, Nutanix, Inc. is actually cheaper at 21.1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NTNX or DOCN?
Over the past 5 years, DigitalOcean Holdings, Inc. (DOCN) delivered a total return of +31.9%, compared to +24.6% for Nutanix, Inc. (NTNX). A $10,000 investment in DOCN five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: DOCN returned +31.9% versus NTNX's +3.5%. 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 — NTNX or DOCN?
By beta (market sensitivity over 5 years), Nutanix, Inc. (NTNX) is the lower-risk stock at 1.25β versus DigitalOcean Holdings, Inc.'s 2.06β — meaning DOCN is approximately 65% more volatile than NTNX relative to the S&P 500.
05Which has better profit margins — NTNX or DOCN?
DigitalOcean Holdings, Inc. (DOCN) is the more profitable company, earning 28.8% net margin versus 7.4% for Nutanix, Inc. — meaning it keeps 28.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DOCN leads at 17.4% versus 6.8% for NTNX. At the gross margin level — before operating expenses — NTNX leads at 86.8%, 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 NTNX or DOCN more undervalued right now?
On forward earnings alone, Nutanix, Inc. (NTNX) trades at 21.1x forward P/E versus 56.0x for DigitalOcean Holdings, Inc. — 34.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NTNX: 58.2% to $60.55.
07Which pays a better dividend — NTNX or DOCN?
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 NTNX or DOCN better for a retirement portfolio?
For long-horizon retirement investors, Nutanix, Inc. (NTNX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.25)). 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 (NTNX: +3.5%, 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 NTNX and DOCN?
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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