Direct Digital (NASDAQ:DRCT) and JC Decaux (OTCMKTS:JCDXF) Critical Analysis
by Tristan Rich · The Markets DailyJC Decaux (OTCMKTS:JCDXF – Get Free Report) and Direct Digital (NASDAQ:DRCT – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares JC Decaux and Direct Digital”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JC Decaux | $4.16 billion | N/A | $297.04 million | N/A | N/A |
| Direct Digital | $62.29 million | 0.01 | -$6.24 million | ($74.73) | -0.01 |
JC Decaux has higher revenue and earnings than Direct Digital.
Risk and Volatility
JC Decaux has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 6.09, suggesting that its share price is 509% more volatile than the S&P 500.
Insider & Institutional 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 stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for JC Decaux and Direct Digital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JC Decaux | 0 | 2 | 0 | 1 | 2.67 |
| Direct Digital | 1 | 1 | 1 | 0 | 2.00 |
Direct Digital has a consensus target price of $330.00, suggesting a potential upside of 37,640.16%. Given Direct Digital’s higher possible upside, analysts clearly believe Direct Digital is more favorable than JC Decaux.
Profitability
This table compares JC Decaux and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JC Decaux | N/A | N/A | N/A |
| Direct Digital | -26.76% | N/A | -39.57% |
Summary
JC Decaux beats Direct Digital on 6 of the 11 factors compared between the two stocks.
About JC Decaux
JCDecaux SE operates as an outdoor advertising company worldwide. It operates through three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment provides advertising services in shopping malls; rents street furniture; and sells and rents equipment, such as automatic public toilets, bikes, etc., as well as provides cleaning, maintenance, and other services. The Transport segment provides advertising services in public transport systems, such as airports, metros, buses, trams, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; neon-light billboards; and advertising wall wraps. The company was founded in 1964 and is based in Neuilly-sur-Seine, France. JCDecaux SE is a subsidiary of JCDecaux Holding SAS.
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.