Direct Digital (NASDAQ:DRCT – Get Free Report) and Next 15 Group (OTCMKTS:NXFNF – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Profitability
This table compares Direct Digital and Next 15 Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Direct Digital | 1.26% | 48.38% | 3.30% |
Next 15 Group | N/A | N/A | N/A |
Valuation and Earnings
This table compares Direct Digital and Next 15 Group’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Direct Digital | $157.11 million | 0.48 | $1.99 million | $0.14 | 37.43 |
Next 15 Group | N/A | N/A | N/A | $0.02 | 726.90 |
Institutional & Insider Ownership
4.0% of Direct Digital shares are held by institutional investors. 80.8% of Direct Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Direct Digital and Next 15 Group, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Direct Digital | 0 | 1 | 2 | 0 | 2.67 |
Next 15 Group | 0 | 0 | 0 | 0 | N/A |
Direct Digital currently has a consensus target price of $21.00, suggesting a potential upside of 300.76%. Given Direct Digital’s higher possible upside, analysts clearly believe Direct Digital is more favorable than Next 15 Group.
Summary
Direct Digital beats Next 15 Group on 9 of the 10 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 Next 15 Group
Next 15 Group plc, together with its subsidiaries, provides communications services in the United Kingdom, Europe, Africa, the United States, and the Asia Pacific. It offers strategy and insight, online marketing, corporate and internal communications, media training, brand and message consultancy, market research, digital, marketing communications, and creative and content, as well as public, media, analyst, and investor relation services; and digital and technology products and services. The company provides its services under the activate, Agent3, Archetype, Beyond, The Blueshirt Group, Brandwidth, Conversion Rate Experts, ELVIS, encore, House 337, M Booth, M Booth Health, Mach49, MHP Group, Mighty Social, Outcast, Palladium, Planning-inc, Publitek, Savanta, SMG, Transform, twogether, and Velocity brands. The company was formerly known as Next Fifteen Communications Group plc and changed its name to Next 15 Group plc in April 2023. Next 15 Group plc was incorporated in 1981 and is based in London, the United Kingdom.
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