Direct Digital (NASDAQ:DRCT – Get Free Report) and Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Valuation & Earnings
This table compares Direct Digital and Liberty Media Corporation – Liberty Formula One Series C”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Direct Digital | $30.91 million | 0.04 | -$18.95 million | ($156.85) | -0.01 |
| Liberty Media Corporation – Liberty Formula One Series C | $4.48 billion | 4.73 | $152.55 million | $0.68 | 139.03 |
Analyst Recommendations
This is a summary of recent recommendations for Direct Digital and Liberty Media Corporation – Liberty Formula One Series C, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
| Liberty Media Corporation – Liberty Formula One Series C | 0 | 3 | 5 | 0 | 2.62 |
Liberty Media Corporation – Liberty Formula One Series C has a consensus target price of $117.57, indicating a potential upside of 24.36%. Given Liberty Media Corporation – Liberty Formula One Series C’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Media Corporation – Liberty Formula One Series C is more favorable than Direct Digital.
Risk and Volatility
Direct Digital has a beta of 5.3, indicating that its stock price is 430% more volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series C has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.
Profitability
This table compares Direct Digital and Liberty Media Corporation – Liberty Formula One Series C’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Direct Digital | -74.38% | N/A | -68.48% |
| Liberty Media Corporation – Liberty Formula One Series C | N/A | N/A | N/A |
Institutional and Insider Ownership
4.0% of Direct Digital shares are held by institutional investors. Comparatively, 92.3% of Liberty Media Corporation – Liberty Formula One Series C shares are held by institutional investors. 25.6% of Direct Digital shares are held by insiders. Comparatively, 4.3% of Liberty Media Corporation – Liberty Formula One Series C shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Liberty Media Corporation – Liberty Formula One Series C beats Direct Digital on 11 of the 13 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 Liberty Media Corporation – Liberty Formula One Series C
Formula One Group, through its subsidiary Formula 1, engages in the motorsports business in the United States and internationally. The company holds commercial rights for the FIA Formula One world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. It is also involved in the operation of the Formula 1 Paddock Club hospitality program; and provision of freight, logistical, and travel related services for the teams and other third parties, as well as the F2 and F3 race series. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation.
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