Direct Digital (NASDAQ:DRCT – Get Free Report) is one of 257 public companies in the “Media” industry, but how does it compare to its competitors? We will compare Direct Digital to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Analyst Recommendations
This is a summary of recent ratings and price targets for Direct Digital and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
| Direct Digital Competitors | 2311 | 6877 | 10711 | 485 | 2.46 |
As a group, “Media” companies have a potential upside of 25.42%. Given Direct Digital’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Direct Digital has less favorable growth aspects than its competitors.
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 | -74.38% | N/A | -68.48% |
| Direct Digital Competitors | -16.60% | -68.57% | -4.64% |
Volatility & Risk
Direct Digital has a beta of 5.33, suggesting that its stock price is 433% more volatile than the S&P 500. Comparatively, Direct Digital’s competitors have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.
Earnings & Valuation
This table compares Direct Digital and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Direct Digital | $30.91 million | -$18.95 million | -0.00 |
| Direct Digital Competitors | $999.49 million | $8.18 million | 4.64 |
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 and Institutional Ownership
4.0% of Direct Digital shares are owned by institutional investors. Comparatively, 37.8% of shares of all “Media” companies are owned by institutional investors. 25.6% of Direct Digital shares are owned by company insiders. Comparatively, 17.6% of shares of all “Media” companies are owned 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.
Summary
Direct Digital competitors beat Direct Digital on 10 of the 13 factors compared.
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.
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