TEN (NASDAQ:XHLD – Get Free Report) and Direct Digital (NASDAQ:DRCT – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares TEN and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TEN | -666.35% | -505.28% | -226.25% |
| Direct Digital | -74.38% | N/A | -68.48% |
Analyst Ratings
This is a breakdown of recent recommendations for TEN and Direct Digital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TEN | 1 | 0 | 0 | 0 | 1.00 |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
4.0% of Direct Digital shares are owned by institutional investors. 1.1% of TEN shares are owned by company insiders. Comparatively, 25.6% of Direct Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
TEN has a beta of 6.1, suggesting that its stock price is 510% more volatile than the S&P 500. Comparatively, Direct Digital has a beta of 5.49, suggesting that its stock price is 449% more volatile than the S&P 500.
Valuation & Earnings
This table compares TEN and Direct Digital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TEN | $2.83 million | 3.63 | -$19.51 million | ($1.74) | -0.49 |
| Direct Digital | $30.91 million | 0.00 | -$18.95 million | ($156.85) | -0.00 |
Direct Digital has higher revenue and earnings than TEN. TEN 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 TEN on 8 of the 11 factors compared between the two stocks.
About TEN
We are a provider of event planning, production, and broadcasting services headquartered in Pennsylvania. We mainly produce virtual and hybrid events and physical events. Virtual and hybrid events involve virtual and hybrid event planning, production and broadcasting services, and continuing education services, all of which are supported by our proprietary Xyvid Pro Platform. Physical events mainly involve live streaming and video recording of physical events. TEN Holdings, Inc. was incorporated under the laws of the State of Pennsylvania as a business corporation on February 12, 2024.
About Direct Digital
Direct Digital Holdings, Inc. is an advertising technology company that provides digital marketing and programmatic advertising solutions to advertisers, agencies, publishers and media owners. The company helps clients plan, execute and optimize campaigns across channels such as display, mobile, connected television, audio and other digital formats. Direct Digital operates through two primary businesses. Huddled Masses Media is its buy-side platform, providing campaign management, audience targeting, media buying and optimization services for advertisers and agencies.
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