Reviewing JC Decaux (OTCMKTS:JCDXF) and Direct Digital (NASDAQ:DRCT)

Direct Digital (NASDAQ:DRCT) and JC Decaux (OTCMKTS:JCDXF) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Valuation & Earnings

This table compares Direct Digital and JC Decaux”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Direct Digital	$62.29 million	0.01	-$6.24 million	($74.73)	-0.01
JC Decaux	$4.16 billion	N/A	$297.04 million	N/A	N/A

JC Decaux has higher revenue and earnings than Direct Digital.

Insider and Institutional Ownership

4.0% of Direct Digital shares are owned by institutional investors. 25.6% of Direct Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Direct Digital and JC Decaux’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Direct Digital	-26.76%	N/A	-39.57%
JC Decaux	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Direct Digital and JC Decaux, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	1	1	1	0	2.00
JC Decaux	0	2	0	1	2.67

Direct Digital presently has a consensus target price of $330.00, indicating a potential upside of 33,573.47%. Given Direct Digital’s higher probable upside, analysts plainly believe Direct Digital is more favorable than JC Decaux.

Volatility & Risk

Direct Digital has a beta of 6.09, indicating that its stock price is 509% more volatile than the S&P 500. Comparatively, JC Decaux has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Summary

JC Decaux beats Direct Digital on 6 of the 11 factors compared between the two stocks.

About Direct Digital

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, and other sectors with a focus on small and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.

About JC Decaux

JCDecaux SE operates as an outdoor advertising company worldwide. It operates through three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment provides advertising services in shopping malls; rents street furniture; and sells and rents equipment, such as automatic public toilets, bikes, etc., as well as provides cleaning, maintenance, and other services. The Transport segment provides advertising services in public transport systems, such as airports, metros, buses, trams, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; neon-light billboards; and advertising wall wraps. The company was founded in 1964 and is based in Neuilly-sur-Seine, France. JCDecaux SE is a subsidiary of JCDecaux Holding SAS.