AXON vs. DOCN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXON and DOCN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AXON | DOCN |
|---|---|---|
| Company Name | Axon Enterprise, Inc. | DigitalOcean Holdings, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Information Technology |
| GICS Industry | Aerospace & Defense | IT Services |
| Market Capitalization | 42.89 billion USD | 4.01 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 19, 2001 | March 24, 2021 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AXON and DOCN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AXON | DOCN |
|---|---|---|
| 5-Day Price Return | -5.19% | -5.80% |
| 13-Week Price Return | -26.50% | 43.98% |
| 26-Week Price Return | -23.51% | 42.32% |
| 52-Week Price Return | -7.80% | 13.57% |
| Month-to-Date Return | -24.29% | 6.20% |
| Year-to-Date Return | -6.72% | 26.74% |
| 10-Day Avg. Volume | 1.51M | 2.42M |
| 3-Month Avg. Volume | 0.71M | 2.95M |
| 3-Month Volatility | 45.52% | 64.49% |
| Beta | 1.46 | 1.72 |
Profitability
Return on Equity (TTM)
AXON
9.66%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
AXON’s Return on Equity of 9.66% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
DOCN
-20.08%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
DOCN has a negative Return on Equity of -20.08%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
AXON
10.05%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
A Net Profit Margin of 10.05% places AXON in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.
DOCN
29.15%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
DOCN’s Net Profit Margin of 29.15% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
AXON
-2.20%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
AXON has a negative Operating Profit Margin of -2.20%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
DOCN
23.01%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 23.01% places DOCN in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AXON | DOCN |
|---|---|---|
| Return on Equity (TTM) | 9.66% | -20.08% |
| Return on Assets (TTM) | 4.39% | 14.98% |
| Net Profit Margin (TTM) | 10.05% | 29.15% |
| Operating Profit Margin (TTM) | -2.20% | 23.01% |
| Gross Profit Margin (TTM) | 60.31% | 59.54% |
Financial Strength
Current Ratio (MRQ)
AXON
3.12
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
AXON’s Current Ratio of 3.12 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
DOCN
1.13
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
DOCN’s Current Ratio of 1.13 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AXON
0.66
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
AXON’s Debt-to-Equity Ratio of 0.66 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
DOCN
30.91
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
With a Debt-to-Equity Ratio of 30.91, DOCN operates with exceptionally high leverage compared to the IT Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
AXON
888.35
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
With an Interest Coverage Ratio of 888.35, AXON demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
DOCN
3.99
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
DOCN’s Interest Coverage Ratio of 3.99 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AXON | DOCN |
|---|---|---|
| Current Ratio (MRQ) | 3.12 | 1.13 |
| Quick Ratio (MRQ) | 2.73 | 0.99 |
| Debt-to-Equity Ratio (MRQ) | 0.66 | 30.91 |
| Interest Coverage Ratio (TTM) | 888.35 | 3.99 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AXON
0.00%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
AXON currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
DOCN
0.00%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
DOCN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
AXON
0.00%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
AXON has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
DOCN
0.00%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
DOCN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AXON | DOCN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AXON
166.73
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
At 166.73, AXON’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
DOCN
15.91
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
In the lower quartile for the IT Services industry, DOCN’s P/E Ratio of 15.91 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
AXON
16.76
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
With a P/S Ratio of 16.76, AXON trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
DOCN
4.64
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
DOCN’s P/S Ratio of 4.64 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
AXON
18.61
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
AXON’s P/B Ratio of 18.61 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
DOCN
51.56
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
At 51.56, DOCN’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AXON | DOCN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 166.73 | 15.91 |
| Price-to-Sales Ratio (TTM) | 16.76 | 4.64 |
| Price-to-Book Ratio (MRQ) | 18.61 | 51.56 |
| Price-to-Free Cash Flow Ratio (TTM) | 165.08 | 28.95 |