Oliveda International (OTCMKTS:OLVI) vs. Direct Digital (NASDAQ:DRCT) Financial Analysis

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Oliveda International and Direct Digital, as provided by MarketBeat.com.

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

Direct Digital has a consensus target price of $21.00, indicating a potential upside of 1,979.41%. Given Direct Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Direct Digital is more favorable than Oliveda International.

Profitability

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

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

Risk & Volatility

Oliveda International has a beta of -1.03, indicating that its share price is 203% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 6.86, indicating that its share price is 586% more volatile than the S&P 500.

Insider & Institutional Ownership

4.0% of Direct Digital shares are owned by institutional investors. 78.1% of Direct Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Oliveda International and Direct Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oliveda International	$3.86 million	468.36	-$1.31 million	N/A	N/A
Direct Digital	$157.11 million	0.09	-$2.19 million	($1.17)	-0.86

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

Summary

Direct Digital beats Oliveda International on 8 of the 12 factors compared between the two stocks.

About Oliveda International

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

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.