Versant (NASDAQ:VSNT – Get Free Report) and Direct Digital (NASDAQ:DRCT – 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 dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Earnings & Valuation
This table compares Versant and Direct Digital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Versant | $6.69 billion | 0.72 | $930.00 million | $3.48 | 10.08 |
| Direct Digital | $30.91 million | 0.00 | -$18.95 million | ($156.85) | -0.00 |
Versant has higher revenue and earnings than Direct Digital. Direct Digital is trading at a lower price-to-earnings ratio than Versant, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Versant and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Versant | 11.09% | 8.32% | 5.78% |
| Direct Digital | -74.38% | N/A | -68.48% |
Institutional & Insider Ownership
4.0% of Direct Digital shares are held by institutional investors. 0.1% of Versant shares are held by company insiders. Comparatively, 25.6% of Direct Digital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Versant and Direct Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Versant | 1 | 6 | 2 | 1 | 2.30 |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
Versant presently has a consensus target price of $41.71, indicating a potential upside of 18.88%. Given Versant’s stronger consensus rating and higher probable upside, equities analysts plainly believe Versant is more favorable than Direct Digital.
Summary
Versant beats Direct Digital on 11 of the 13 factors compared between the two stocks.
About Versant
Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.
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 Versant Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Versant and related companies with MarketBeat.com's FREE daily email newsletter.
