Digerati Technologies (OTCMKTS:DTGI – Get Free Report) and Consensus Cloud Solutions (NASDAQ:CCSI – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Volatility & Risk
Digerati Technologies has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Consensus Cloud Solutions has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Insider and Institutional Ownership
93.9% of Consensus Cloud Solutions shares are held by institutional investors. 25.6% of Digerati Technologies shares are held by company insiders. Comparatively, 1.9% of Consensus Cloud Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Digerati Technologies | $29.96 million | 0.20 | -$12.64 million | ($0.01) | -3.09 |
Consensus Cloud Solutions | $350.38 million | 1.57 | $89.43 million | $4.15 | 6.98 |
Consensus Cloud Solutions has higher revenue and earnings than Digerati Technologies. Digerati Technologies is trading at a lower price-to-earnings ratio than Consensus Cloud Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Digerati Technologies and Consensus Cloud Solutions, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Digerati Technologies | 0 | 0 | 0 | 0 | 0.00 |
Consensus Cloud Solutions | 1 | 0 | 3 | 0 | 2.50 |
Consensus Cloud Solutions has a consensus price target of $29.00, indicating a potential upside of 0.10%. Given Consensus Cloud Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Consensus Cloud Solutions is more favorable than Digerati Technologies.
Profitability
This table compares Digerati Technologies and Consensus Cloud Solutions’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Digerati Technologies | -14.88% | N/A | -27.19% |
Consensus Cloud Solutions | 23.20% | -147.92% | 14.73% |
Summary
Consensus Cloud Solutions beats Digerati Technologies on 12 of the 14 factors compared between the two stocks.
About Digerati Technologies
Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.
About Consensus Cloud Solutions
Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.
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