Direct Digital (NASDAQ:DRCT – Get Free Report) and Versant (NASDAQ:VSNT – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Profitability
This table compares Direct Digital and Versant’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Direct Digital | -74.38% | N/A | -68.48% |
| Versant | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent recommendations for Direct Digital and Versant, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
| Versant | 1 | 6 | 2 | 1 | 2.30 |
Versant has a consensus price target of $41.71, suggesting a potential upside of 22.76%. Given Versant’s stronger consensus rating and higher possible upside, analysts clearly believe Versant is more favorable than Direct Digital.
Earnings and Valuation
This table compares Direct Digital and Versant”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Direct Digital | $30.91 million | 0.00 | -$18.95 million | ($156.85) | -0.00 |
| Versant | $6.69 billion | 0.71 | $930.00 million | $3.48 | 9.76 |
Versant has higher revenue and earnings than Direct Digital. Direct Digital is trading at a lower price-to-earnings ratio than Versant, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
4.0% of Direct Digital shares are owned by institutional investors. 25.6% of Direct Digital shares are owned by insiders. Comparatively, 0.1% of Versant shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Versant beats Direct Digital on 10 of the 12 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 Versant
Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.
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