Which Is a Better Investment, DigitalOcean Holdings Inc or Kingsoft Cloud Holdings Ltd (ADR) Stock?

By Cynthia McLaughlin
September 13, 2026
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Sifting through countless of stocks in the IT Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Kingsoft Cloud Holdings Limited, DigitalOcean Holdings or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc.

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company’s product portfolio includes cloud products, such as infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, software as a service (SaaS) applications, and AI solution. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, China.

DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. The company provides AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) 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 managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; bare metal GPUS, which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as online gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in Broomfield, Colorado.

Latest IT Services and Kingsoft Cloud Holdings Limited, DigitalOcean Holdings, Inc. Stock News

As of September 11, 2026, Kingsoft Cloud Holdings Limited had a $3.0 billion market capitalization, compared to the IT Services median of $822.0 million. Kingsoft Cloud Holdings Limited’s stock is down 3.7% in 2026, down 5% in the previous five trading days and down 37.28% in the past year.

Currently, Kingsoft Cloud Holdings Limited does not have a price-earnings ratio. Kingsoft Cloud Holdings Limited’s trailing 12-month revenue is $1.6 billion with a -5.5% net profit margin. Year-over-year quarterly sales growth most recently was 37.9%. There are no analysts providing consensus earnings estimates for the current fiscal year. Kingsoft Cloud Holdings Limited does not currently pay a dividend.

As of September 11, 2026, DigitalOcean Holdings, Inc. had a $14.5 billion market cap, putting it in the 82nd percentile of all stocks. DigitalOcean Holdings, Inc.’s stock is up 155.5% in 2026, up 12.4% in the previous five trading days and up 259.61% in the past year.

Currently, DigitalOcean Holdings, Inc.’s price-earnings ratio is 58.5. DigitalOcean Holdings, Inc.’s trailing 12-month revenue is $1.0 billion with a 23.3% net profit margin. Year-over-year quarterly sales growth most recently was 28.6%. Analysts expect adjusted earnings to reach $1.457 per share for the current fiscal year. DigitalOcean Holdings, Inc. does not currently pay a dividend.

How We Compare Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc.’s stock grades to see how they measure up against one another.

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Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc. Stock Value Grades

Company Ticker Value
Kingsoft Cloud Holdings Limited KC A
DigitalOcean Holdings, Inc. DOCN F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Kingsoft Cloud Holdings Limited has a Value Score of 82, which is Deep Value. DigitalOcean Holdings, Inc. has a Value Score of 2, which is Ultra Expensive.

The Value Stock Winner: Kingsoft Cloud Holdings Limited

As you can clearly see from the Value Grade breakdown above, Kingsoft Cloud Holdings Limited is considered to have better value than DigitalOcean Holdings, Inc.. For investors who focus solely on a company’s valuation, Kingsoft Cloud Holdings Limited could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc.’s Quality Grades

Company Ticker Quality
Kingsoft Cloud Holdings Limited KC D
DigitalOcean Holdings, Inc. DOCN C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Kingsoft Cloud Holdings Limited has a Quality Score of 27, which is Weak. DigitalOcean Holdings, Inc. has a Quality Score of 41, which is Average.

The Quality Stock Winner: No Clear Winner

Neither Kingsoft Cloud Holdings Limited, DigitalOcean Holdings or Inc. has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Kingsoft Cloud Holdings Limited, DigitalOcean Holdings or Inc. is the better investment when it comes to quality.

Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc.’s Momentum Grades

Company Ticker Momentum
Kingsoft Cloud Holdings Limited KC F
DigitalOcean Holdings, Inc. DOCN A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Kingsoft Cloud Holdings Limited has a Momentum Score of 20, which is Very Weak. DigitalOcean Holdings, Inc. has a Momentum Score of 96, which is Very Strong.

The Momentum Grade Winner: DigitalOcean Holdings, Inc.

As you can clearly see from the Momentum Grade breakdown above, DigitalOcean Holdings, Inc. is considered to have stronger momentum compared to Kingsoft Cloud Holdings Limited. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, DigitalOcean Holdings, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc. Grades

In addition to Value, Quality and Momentum, A+ Investor also provides grades for Growth and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Kingsoft Cloud Holdings Limited, DigitalOcean Holdings or Inc. Stock?

Overall, Kingsoft Cloud Holdings Limited stock has a Value Score of 82, Momentum Score of 20 and Quality Score of 27.

DigitalOcean Holdings, Inc. stock has a Value Score of 2, Momentum Score of 96 and Quality Score of 41.

Comparing Kingsoft Cloud Holdings Limited, DigitalOcean Holdings and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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