Head-To-Head Comparison: Direct Digital (NASDAQ:DRCT) and Balincan USA (OTCMKTS:BCNN)

Direct Digital (NASDAQ:DRCT) and Balincan USA (OTCMKTS:BCNN) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Insider & Institutional Ownership

4.0% of Direct Digital shares are owned by institutional investors. 80.8% of Direct Digital shares are owned by insiders. Comparatively, 43.8% of Balincan USA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Direct Digital and Balincan USA’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Direct Digital	$157.11 million	0.65	$1.99 million	$0.14	51.07
Balincan USA	N/A	N/A	N/A	N/A	N/A

Direct Digital has higher revenue and earnings than Balincan USA.

Risk and Volatility

Direct Digital has a beta of 7.91, meaning that its share price is 691% more volatile than the S&P 500. Comparatively, Balincan USA has a beta of 6.31, meaning that its share price is 531% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Direct Digital and Balincan USA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	0	1	3	0	2.75
Balincan USA	0	0	0	0	N/A

Direct Digital presently has a consensus price target of $15.83, suggesting a potential upside of 121.45%. Given Direct Digital’s higher probable upside, equities analysts clearly believe Direct Digital is more favorable than Balincan USA.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Direct Digital	1.26%	48.38%	3.30%
Balincan USA	N/A	N/A	N/A

Summary

Direct Digital beats Balincan USA on 9 of the 9 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 Balincan USA

Tekumo LLC designs and develops on-demand service as a service (SaaS)-based platform. The company was founded in 2018 and is based in Colorado Springs, Colorado.