Head-To-Head Review: Inuvo (NYSE:INUV) vs. Direct Digital (NASDAQ:DRCT)

Inuvo (NYSE:INUVGet Rating) and Direct Digital (NASDAQ:DRCTGet Rating) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Inuvo and Direct Digital’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inuvo $59.83 million 0.66 -$7.60 million ($0.09) -3.64
Direct Digital $38.14 million 1.09 -$1.51 million ($62.19) -0.05

Direct Digital has lower revenue, but higher earnings than Inuvo. Inuvo is trading at a lower price-to-earnings ratio than Direct Digital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Inuvo and Direct Digital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inuvo 0 0 0 0 N/A
Direct Digital 0 0 3 0 3.00

Direct Digital has a consensus target price of $6.50, indicating a potential upside of 128.07%. Given Direct Digital’s higher possible upside, analysts plainly believe Direct Digital is more favorable than Inuvo.

Profitability

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

Net Margins Return on Equity Return on Assets
Inuvo -13.28% -35.24% -25.11%
Direct Digital 0.87% 99.00% 6.44%

Insider and Institutional Ownership

16.1% of Inuvo shares are owned by institutional investors. Comparatively, 7.3% of Direct Digital shares are owned by institutional investors. 8.3% of Inuvo shares are owned by company insiders. Comparatively, 78.3% of Direct Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Direct Digital beats Inuvo on 9 of the 12 factors compared between the two stocks.

About Inuvo

(Get Rating)

Inuvo, Inc., a technology company, develops and sells information technology solutions in the United States. The company's platforms identify and message online audiences for various products or services across devices, formats, and channels, including video, mobile, connected TV, linear TV, display, social, search, and native. Its platforms optimizes the purchase and placement of advertising in real time. The company's products and services include ValidClick that provides marketing and advertising services, as well as collection of data, analytics, software, and publishing gets used to align merchant advertising messages with anonymous consumers across various websites online; and IntentKey, an artificial intelligence-based consumer intent recognition system designed to reach targeted mobile and desktop in-market audiences. It also operates a collection of websites under the Bonfire Publishing brand, which creates content across a range of topics, including health, finance, travel, careers, auto, education, and lifestyle categories. The company's marketing channels consist of websites, social media, blogs, public relations, trade shows, and conferences. Inuvo, Inc. was incorporated in 1987 and is headquartered in Little Rock, Arkansas.

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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