Critical Review: Balincan USA (OTCMKTS:BCNN) vs. Direct Digital (NASDAQ:DRCT)

Balincan USA (OTCMKTS:BCNN) and Direct Digital (NASDAQ:DRCT) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Risk & Volatility

Balincan USA has a beta of 6.31, suggesting that its share price is 531% more volatile than the S&P 500. Comparatively, Direct Digital has a beta of 7.91, suggesting that its share price is 691% more volatile than the S&P 500.

Valuation & Earnings

This table compares Balincan USA and Direct Digital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Balincan USA	N/A	N/A	N/A	N/A	N/A
Direct Digital	$157.11 million	0.63	$1.99 million	$0.14	49.43

Direct Digital has higher revenue and earnings than Balincan USA.

Institutional and Insider Ownership

4.0% of Direct Digital shares are held by institutional investors. 43.8% of Balincan USA shares are held by insiders. Comparatively, 80.8% of Direct Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Balincan USA and Direct Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Balincan USA	0	0	0	0	N/A
Direct Digital	0	1	2	0	2.67

Direct Digital has a consensus target price of $21.00, indicating a potential upside of 203.47%. Given Direct Digital’s higher possible upside, analysts plainly believe Direct Digital is more favorable than Balincan USA.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Balincan USA	N/A	N/A	N/A
Direct Digital	1.26%	48.38%	3.30%

Summary

Direct Digital beats Balincan USA on 9 of the 9 factors compared between the two stocks.

About Balincan USA

Tekumo LLC designs and develops on-demand service as a service (SaaS)-based platform. The company was founded in 2018 and is based in Colorado Springs, Colorado.

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.