Contrasting DoubleVerify (NYSE:DV) and Digerati Technologies (OTCMKTS:DTGI)

Digerati Technologies (OTCMKTS:DTGI) and DoubleVerify (NYSE:DV) 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 profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Earnings & Valuation

This table compares Digerati Technologies and DoubleVerify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digerati Technologies	$22.76 million	0.10	-$810,000.00	$0.03	0.33
DoubleVerify	$748.29 million	2.19	$50.65 million	$0.30	34.75

DoubleVerify has higher revenue and earnings than Digerati Technologies. Digerati Technologies is trading at a lower price-to-earnings ratio than DoubleVerify, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Digerati Technologies and DoubleVerify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digerati Technologies	23.07%	N/A	N/A
DoubleVerify	6.77%	7.50%	6.25%

Institutional & Insider Ownership

97.3% of DoubleVerify shares are held by institutional investors. 25.6% of Digerati Technologies shares are held by insiders. Comparatively, 4.0% of DoubleVerify shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Digerati Technologies has a beta of -0.39, suggesting that its share price is 139% less volatile than the S&P 500. Comparatively, DoubleVerify has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Digerati Technologies and DoubleVerify, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digerati Technologies	0	0	0	0	0.00
DoubleVerify	2	4	11	0	2.53

DoubleVerify has a consensus price target of $16.00, suggesting a potential upside of 53.46%. Given DoubleVerify’s stronger consensus rating and higher probable upside, analysts clearly believe DoubleVerify is more favorable than Digerati Technologies.

Summary

DoubleVerify beats Digerati Technologies on 12 of the 14 factors compared between the two stocks.

About Digerati Technologies

Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data 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. In addition, the company provides 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. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, 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.