Liberty Global (NASDAQ:LBTYB – Get Free Report) and Direct Digital (NASDAQ:DRCT – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
0.5% of Liberty Global shares are owned by institutional investors. Comparatively, 4.0% of Direct Digital shares are owned by institutional investors. 6.5% of Liberty Global shares are owned by insiders. Comparatively, 25.6% of Direct Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Liberty Global and Direct Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Liberty Global and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Global | -62.11% | -28.82% | -13.28% |
| Direct Digital | -74.38% | N/A | -68.48% |
Risk & Volatility
Liberty Global has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 5.33, suggesting that its share price is 433% more volatile than the S&P 500.
Valuation and Earnings
This table compares Liberty Global and Direct Digital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Global | $4.88 billion | 0.80 | -$7.14 billion | ($8.98) | -1.27 |
| Direct Digital | $30.91 million | 0.00 | -$18.95 million | ($156.85) | -0.00 |
Direct Digital has lower revenue, but higher earnings 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 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.
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.
Receive News & Ratings for Liberty Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Liberty Global and related companies with MarketBeat.com's FREE daily email newsletter.
