Reviewing Leafbuyer Technologies (OTCMKTS:LBUYD) & DigitalOcean (NYSE:DOCN)

Leafbuyer Technologies (OTCMKTS:LBUYD) and DigitalOcean (NYSE:DOCN) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Institutional and Insider Ownership

11.0% of Leafbuyer Technologies shares are held by institutional investors. Comparatively, 49.8% of DigitalOcean shares are held by institutional investors. 25.8% of Leafbuyer Technologies shares are held by company insiders. Comparatively, 1.0% of DigitalOcean shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Leafbuyer Technologies has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, DigitalOcean has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares Leafbuyer Technologies and DigitalOcean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leafbuyer Technologies	2.66%	-8.43%	11.11%
DigitalOcean	23.26%	31.01%	5.76%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Leafbuyer Technologies and DigitalOcean, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leafbuyer Technologies	0	0	0	0	0.00
DigitalOcean	0	3	11	2	2.94

DigitalOcean has a consensus target price of $151.33, suggesting a potential upside of 21.89%. Given DigitalOcean’s stronger consensus rating and higher possible upside, analysts clearly believe DigitalOcean is more favorable than Leafbuyer Technologies.

Valuation & Earnings

This table compares Leafbuyer Technologies and DigitalOcean”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leafbuyer Technologies	$6.47 million	0.02	$260,000.00	N/A	N/A
DigitalOcean	$1.01 billion	12.82	$259.26 million	$2.19	56.69

DigitalOcean has higher revenue and earnings than Leafbuyer Technologies.

Summary

DigitalOcean beats Leafbuyer Technologies on 10 of the 13 factors compared between the two stocks.

About Leafbuyer Technologies

Leafbuyer Technologies, Inc., through its subsidiary, LB Media Group, LLC, provides online resources for cannabis deals and specials in the United States. The company was founded in 2012 and is headquartered in Greenwood Village, Colorado.

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.