Contrasting Direct Digital (DRCT) & Its Competitors

Direct Digital (NASDAQ:DRCTGet Rating) is one of 32 publicly-traded companies in the “Advertising” industry, but how does it compare to its competitors? We will compare Direct Digital to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Direct Digital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Direct Digital 0 0 3 0 3.00
Direct Digital Competitors 102 401 586 7 2.45

Direct Digital presently has a consensus price target of $6.50, suggesting a potential upside of 115.23%. As a group, “Advertising” companies have a potential upside of 97.90%. Given Direct Digital’s stronger consensus rating and higher probable upside, analysts clearly believe Direct Digital is more favorable than its competitors.

Earnings & Valuation

This table compares Direct Digital and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Direct Digital $38.14 million -$1.51 million -0.05
Direct Digital Competitors $1.30 billion $559.00 million 4.98

Direct Digital’s competitors have higher revenue and earnings than Direct Digital. Direct Digital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

2.4% of Direct Digital shares are held by institutional investors. Comparatively, 36.1% of shares of all “Advertising” companies are held by institutional investors. 16.0% of shares of all “Advertising” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Direct Digital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Direct Digital 0.87% 99.00% 6.44%
Direct Digital Competitors -16.75% -78.64% -6.32%

Direct Digital Company Profile

(Get Rating)

Direct Digital Holdings, Inc. operates as an end-to-end full-service programmatic advertising platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem. It serves various industry verticals, such as travel, healthcare, education, financial services, consumer products, etc. with focus on small- and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.

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