Direct Digital (NASDAQ:DRCT) vs. Haoxi Health Technology (NASDAQ:HAO) Financial Review

Haoxi Health Technology (NASDAQ:HAO) and Direct Digital (NASDAQ:DRCT) 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Haoxi Health Technology	N/A	N/A	N/A
Direct Digital	-26.76%	N/A	-39.57%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haoxi Health Technology	1	0	0	0	1.00
Direct Digital	1	1	1	0	2.00

Direct Digital has a consensus price target of $6.00, indicating a potential upside of 10,576.16%. Given Direct Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Direct Digital is more favorable than Haoxi Health Technology.

Institutional & Insider Ownership

4.0% of Direct Digital shares are held by institutional investors. 25.6% of Direct Digital 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.

Volatility and Risk

Haoxi Health Technology has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 5.95, suggesting that its stock price is 495% more volatile than the S&P 500.

Earnings & Valuation

This table compares Haoxi Health Technology and Direct Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haoxi Health Technology	$32.80 million	0.25	$3.88 million	N/A	N/A
Direct Digital	$62.29 million	0.03	-$6.24 million	($1.36)	-0.04

Haoxi Health Technology has higher earnings, but lower revenue than Direct Digital.

Summary

Direct Digital beats Haoxi Health Technology on 7 of the 11 factors compared between the two stocks.

About Haoxi Health Technology

Haoxi Health Technology Limited, through its subsidiaries, provides online marketing solutions in China. It offers online marketing solutions, including online short video marketing solutions to advertisers through its media partners; and customized marketing solutions by planning, producing, placing, and optimizing online ads to help advertisers acquire, convert, and retain consumers on various online media platforms. The company places its ads through mainstream online short video and social media platforms, such as Toutiao, Douyin, WeChat, and Sina Weibo. It serves advertiser client base primarily in the healthcare industry. The company was founded in 2018 and is based in Beijing, China.

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.