X3 (NASDAQ:XTKG) versus Direct Digital (NASDAQ:DRCT) Head-To-Head Analysis

Direct Digital (NASDAQ:DRCT) and X3 (NASDAQ:XTKG) 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, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Valuation & Earnings

This table compares Direct Digital and X3″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Direct Digital	$62.29 million	0.01	-$6.24 million	($74.73)	-0.01
X3	$11.61 million	0.09	-$76.24 million	N/A	N/A

Direct Digital has higher revenue and earnings than X3.

Profitability

This table compares Direct Digital and X3’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Direct Digital	-26.76%	N/A	-39.57%
X3	N/A	N/A	N/A

Volatility and Risk

Direct Digital has a beta of 6.09, indicating that its stock price is 509% more volatile than the S&P 500. Comparatively, X3 has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Insider and Institutional Ownership

4.0% of Direct Digital shares are owned by institutional investors. Comparatively, 1.9% of X3 shares are owned by institutional investors. 25.6% of Direct Digital shares are owned by company insiders. Comparatively, 23.9% of X3 shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Direct Digital and X3, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	1	1	1	0	2.00
X3	1	0	0	0	1.00

Direct Digital currently has a consensus price target of $330.00, indicating a potential upside of 40,390.80%. Given Direct Digital’s stronger consensus rating and higher possible upside, research analysts plainly believe Direct Digital is more favorable than X3.

Summary

Direct Digital beats X3 on 8 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 X3

X3 Holdings Co Ltd. provides technology solutions and services worldwide. The company offers Global Trade Platform, a digital platform for trading partners, service providers, and government authorities. It also engages in bitcoin cryptomining operations, renewable energy projects, and agriculture technologies and trading. The company was formerly known as Powerbridge Technologies Co., Ltd. and changed its name to X3 Holdings Co Ltd. in January 2024. X3 Holdings Co Ltd. was founded in 1997 and is headquartered in Singapore.