Head to Head Review: DigitalOcean (NYSE:DOCN) versus Predictive Oncology (NASDAQ:POAI)

Predictive Oncology (NASDAQ:POAI) and DigitalOcean (NYSE:DOCN) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Valuation and Earnings

This table compares Predictive Oncology and DigitalOcean”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Predictive Oncology	$1.66 million	24.65	-$12.66 million	($13.50)	-0.90
DigitalOcean	$901.43 million	16.21	$259.26 million	$2.19	63.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Predictive Oncology	-5,065.23%	-732.73%	-235.55%
DigitalOcean	23.26%	31.01%	5.76%

Insider and Institutional Ownership

9.0% of Predictive Oncology shares are owned by institutional investors. Comparatively, 49.8% of DigitalOcean shares are owned by institutional investors. 1.2% of Predictive Oncology shares are owned by company insiders. Comparatively, 1.0% of DigitalOcean shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Predictive Oncology has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Predictive Oncology and DigitalOcean, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Predictive Oncology	1	0	0	0	1.00
DigitalOcean	0	3	12	2	2.94

DigitalOcean has a consensus target price of $152.81, suggesting a potential upside of 9.15%. Given DigitalOcean’s stronger consensus rating and higher possible upside, analysts plainly believe DigitalOcean is more favorable than Predictive Oncology.

Summary

DigitalOcean beats Predictive Oncology on 13 of the 15 factors compared between the two stocks.

About Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.

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.