DigitalOcean vs Verisign
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KIRAβs take AI analyst
I put DigitalOcean and Verisign side by side, using each oneβs latest annual report. Here is what stands out:
- Verisign is the larger business, with $1.7B of revenue in fiscal 2025 against $901M for DigitalOcean, about 1.8 times as much.
- DigitalOcean grew revenue faster (15.5%, against 6.4%).
- Verisign kept more of each dollar of sales as operating profit (67.7% operating margin, against 17.4%).
- Verisign turned more of its sales into free cash flow (64.5% FCF margin, against 20.0%).
- Investors pay more for each dollar of DigitalOceanβs earnings: a P/E of 43.2x against 32.3x for Verisign.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
DigitalOcean
DOCN
2/9
Revenue growth5-year growth
Verisign
VRSN
7/9
Gross marginOperating marginNet marginFCF marginPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | DOCN FY25 | VRSN FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.8B | $27.1B |
| Revenue | $901M | $1.7B |
| Free cash flow | $181M | $1.1B |
| Net income | $259M | $826M |
| Growth | ||
| Revenue growth | 15.5% | 6.4% |
| 5-year growth | 23.1% | 5.5% |
| Share count change | 11.5% | β4.5% |
| Profitability | ||
| Gross margin | 59.9% | 88.2% |
| Operating margin | 17.4% | 67.7% |
| Net margin | 28.8% | 49.8% |
| FCF margin | 20.0% | 64.5% |
| Return on capital | 15.7% | β |
| Return on equity | β | β |
| Balance sheet | ||
| Net debt | $1.2B | $1.2B |
| Net debt / EBITDA | 4.0x | 1.1x |
| Dividends and buybacks | $82.1M | $1.1B |
| Valuation & quality | ||
| P/E | 43.2x | 32.3x |
| Piotroski F-score | 7 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.