Critical Review: Direct Digital (NASDAQ:DRCT) vs. Oliveda International (OTCMKTS:OLVI)

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

Institutional & Insider Ownership

4.0% of Direct Digital shares are held by institutional investors. 78.1% of Direct Digital 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.

Risk and Volatility

Direct Digital has a beta of 6.86, indicating that its share price is 586% more volatile than the S&P 500. Comparatively, Oliveda International has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500.

Valuation & Earnings

This table compares Direct Digital and Oliveda International”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	0.10	-$2.19 million	($1.17)	-0.87
Oliveda International	$3.86 million	416.50	-$1.31 million	N/A	N/A

Oliveda International has lower revenue, but higher earnings than Direct Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Direct Digital	-5.61%	-25.66%	-10.40%
Oliveda International	-8.70%	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Direct Digital and Oliveda International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Direct Digital	0	1	2	0	2.67
Oliveda International	0	0	0	0	0.00

Direct Digital presently has a consensus price target of $21.00, indicating a potential upside of 1,958.82%. Given Direct Digital’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Direct Digital is more favorable than Oliveda International.

Summary

Direct Digital beats Oliveda International on 8 of the 12 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 Oliveda International

Heritage Media Corporation was formerly known as Lignin Industries Inc. Heritage Media Corporation is based in Calgary, Canada.