DoubleVerify (NYSE:DV) vs. Direct Digital (NASDAQ:DRCT) Financial Comparison

DoubleVerify (NYSE:DVGet Rating) and Direct Digital (NASDAQ:DRCTGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

85.1% of DoubleVerify shares are held by institutional investors. Comparatively, 9.6% of Direct Digital shares are held by institutional investors. 5.6% of DoubleVerify shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
DoubleVerify 7.80% 5.63% 5.00%
Direct Digital N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and target prices for DoubleVerify and Direct Digital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DoubleVerify 0 2 10 0 2.83
Direct Digital 0 0 2 0 3.00

DoubleVerify currently has a consensus target price of $34.27, suggesting a potential upside of 53.62%. Direct Digital has a consensus target price of $6.00, suggesting a potential upside of 272.67%. Given Direct Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Direct Digital is more favorable than DoubleVerify.

Earnings & Valuation

This table compares DoubleVerify and Direct Digital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DoubleVerify $332.74 million 10.96 $29.31 million $0.17 131.24
Direct Digital $38.14 million 0.12 N/A N/A N/A

DoubleVerify has higher revenue and earnings than Direct Digital.

Summary

DoubleVerify beats Direct Digital on 8 of the 10 factors compared between the two stocks.

About DoubleVerify (Get Rating)

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics in the United States and internationally. Its solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The company's solutions include DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention solution that provides exposure and engagement predictive analytics to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. Its solutions also comprise DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. The company's software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, connected TV, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

About Direct Digital (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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