Comparing Digital Turbine (NASDAQ:APPS) and Agora (NASDAQ:API)

Agora (NASDAQ:API) and Digital Turbine (NASDAQ:APPS) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Agora and Digital Turbine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agora	0	2	1	0	2.33
Digital Turbine	1	2	5	0	2.50

Agora presently has a consensus target price of $6.80, suggesting a potential upside of 57.41%. Digital Turbine has a consensus target price of $15.10, suggesting a potential upside of 58.61%. Given Digital Turbine’s stronger consensus rating and higher possible upside, analysts plainly believe Digital Turbine is more favorable than Agora.

Volatility and Risk

Agora has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 3.02, suggesting that its share price is 202% more volatile than the S&P 500.

Earnings & Valuation

This table compares Agora and Digital Turbine”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agora	$151.69 million	2.49	$9.53 million	$0.11	39.27
Digital Turbine	$600.31 million	1.92	-$37.73 million	($0.26)	-36.62

Agora has higher earnings, but lower revenue than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Agora, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

40.4% of Agora shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 14.6% of Agora shares are held by company insiders. Comparatively, 6.0% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Agora and Digital Turbine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agora	7.23%	1.96%	1.52%
Digital Turbine	-4.46%	38.34%	8.27%

Summary

Digital Turbine beats Agora on 8 of the 14 factors compared between the two stocks.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.

About Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.