Analyzing Baosheng Media Group (NASDAQ:BAOS) and Direct Digital (NASDAQ:DRCT)

Direct Digital (NASDAQ:DRCT) and Baosheng Media Group (NASDAQ:BAOS) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

Direct Digital has a beta of 5.44, suggesting that its stock price is 444% more volatile than the S&P 500. Comparatively, Baosheng Media Group has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Earnings & Valuation

This table compares Direct Digital and Baosheng Media Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Direct Digital	$34.69 million	0.09	-$18.95 million	($201.62)	-0.02
Baosheng Media Group	$568,993.00	7.92	-$12.02 million	N/A	N/A

Baosheng Media Group has lower revenue, but higher earnings than Direct Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Direct Digital	-65.75%	N/A	-57.71%
Baosheng Media Group	N/A	N/A	N/A

Institutional and Insider Ownership

4.0% of Direct Digital shares are held by institutional investors. Comparatively, 6.3% of Baosheng Media Group shares are held by institutional investors. 25.6% of Direct Digital shares are held by company insiders. Comparatively, 22.6% of Baosheng Media Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Direct Digital and Baosheng Media Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	1	1	0	0	1.50
Baosheng Media Group	1	0	0	0	1.00

Summary

Baosheng Media Group beats Direct Digital on 5 of the 9 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 Baosheng Media Group

Baosheng Media Group Holdings Limited operates as an online marketing solution provider in the People's Republic of China. It connects advertisers, online media, and helping advertisers to manage their online marketing activities in various ways, including advising on advertising strategies, budget, and choice of advertising channels; procures ad inventory; offers ad optimization services; and administrates and fine-tunes the ad placement process. The company also serves media businesses in various ways, including identifying advertisers to buy their ad inventory; facilitating payment arrangements with advertisers; assisting advertisers in handling ad deployment logistics with media; and engaging in other marketing and promotion activities aimed at educating and inducing advertisers to use online advertising. Its advertising services comprise search engine marketing (SEM) services, such as the deployment of ranked search ads and other display search ads offered by search engine operators; and non-SEM services consisting of social media marketing, in-feed advertising, and mobile app advertising through deploying ads on media, such as social media platforms, short-video platforms, news portals, and mobile apps. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.