Angi (NASDAQ:ANGI – Get Rating) and Direct Digital (NASDAQ:DRCT – Get Rating) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Valuation & Earnings
This table compares Angi and Direct Digital's gross revenue, earnings per share (EPS) and valuation.
Get Angi alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Angi | $1.69 billion | 0.58 | -$71.38 million | ($0.20) | -9.70 |
| Direct Digital | $38.14 million | 0.22 | -$1.51 million | ($62.19) | -0.04 |
Direct Digital has lower revenue, but higher earnings than Angi. Angi 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 Angi and Direct Digital, as provided by MarketBeat.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angi | 1 | 2 | 6 | 0 | 2.56 |
| Direct Digital | 0 | 0 | 3 | 0 | 3.00 |
Angi currently has a consensus target price of $7.01, indicating a potential upside of 261.29%. Direct Digital has a consensus target price of $6.50, indicating a potential upside of 150.00%. Given Angi's higher probable upside, equities research analysts plainly believe Angi is more favorable than Direct Digital.
Profitability
This table compares Angi and Direct Digital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angi | -5.42% | -9.09% | -5.06% |
| Direct Digital | 0.87% | 99.00% | 6.44% |
Insider and Institutional Ownership
13.0% of Angi shares are held by institutional investors. Comparatively, 2.4% of Direct Digital shares are held by institutional investors. 2.4% of Angi 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.
Summary
Angi beats Direct Digital on 7 of the 13 factors compared between the two stocks.
About Angi
(Get Rating)
Angi Inc. connects home service professionals with consumers in the United States and internationally. Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services. The company also owns and operates Angi Leads digital marketplace service that connects consumers with service professionals for home repair, maintenance, and improvement projects; offers consumers with tools and resources to find local, pre-screened, and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone, and home services-related resources. In addition, it operates Handy, a platform for household services, primarily cleaning and handyman services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, and Instapro names. As of December 31, 2021, it had a network of approximately 206,000 transacting service professionals; and approximately 38,000 advertising service professionals. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. is a subsidiary of IAC/InterActiveCorp.
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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