Critical Survey: Direct Digital (NASDAQ:DRCT) & Balincan USA (OTCMKTS:BCNN)

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

Volatility and Risk

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

Valuation & Earnings

This table compares Direct Digital and Balincan USA’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Direct Digital	$157.11 million	0.63	$1.99 million	$0.14	49.43
Balincan USA	N/A	N/A	N/A	N/A	N/A

Direct Digital has higher revenue and earnings than Balincan USA.

Institutional & Insider Ownership

4.0% of Direct Digital shares are held by institutional investors. 80.8% of Direct Digital shares are held by company insiders. Comparatively, 43.8% of Balincan USA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Direct Digital and Balincan USA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	0	1	2	0	2.67
Balincan USA	0	0	0	0	N/A

Direct Digital currently has a consensus price target of $21.00, indicating a potential upside of 203.47%. Given Direct Digital’s higher possible upside, equities research analysts plainly 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.