Direct Digital (NASDAQ:DRCT – Get Free Report) and Liberty Global (NASDAQ:LBTYB – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Direct Digital has a beta of 5.33, indicating that its share price is 433% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
Profitability
This table compares Direct Digital and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Direct Digital | -74.38% | N/A | -68.48% |
| Liberty Global | -62.11% | -28.82% | -13.28% |
Institutional and Insider Ownership
4.0% of Direct Digital shares are held by institutional investors. Comparatively, 0.5% of Liberty Global shares are held by institutional investors. 25.6% of Direct Digital shares are held by company insiders. Comparatively, 6.5% of Liberty Global shares are held by company 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 current recommendations for Direct Digital and Liberty Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Direct Digital and Liberty Global”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Direct Digital | $30.91 million | 0.00 | -$18.95 million | ($156.85) | -0.00 |
| Liberty Global | $4.88 billion | 0.80 | -$7.14 billion | ($8.98) | -1.27 |
Direct Digital has higher earnings, but lower revenue than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Direct Digital, indicating that it is currently the more affordable of the two stocks.
Summary
Direct Digital beats Liberty Global on 6 of the 11 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 Liberty Global
Liberty Global Plc is an international television and broadband company, which engages in the provision of broadband communications services. It operates through the following geographical segments: U.K. and Ireland, Belgium, Switzerland, Central and Eastern Europe, and Central and Corporate. Its products include broadband, WiFi, connectivity products, TV platforms, and TV content. The company was founded in 2004 and is headquartered in London, the United Kingdom.
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