Direct Digital (DRCT) Competitors

PSQ (NYSE:PSQH) and Direct Digital (NASDAQ:DRCT) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their media sentiment, valuation, community ranking, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Do analysts rate PSQH or DRCT?

PSQ currently has a consensus target price of $7.50, suggesting a potential upside of 112.46%. Direct Digital has a consensus target price of $21.00, suggesting a potential upside of 546.15%. Given PSQ's higher probable upside, analysts clearly believe Direct Digital is more favorable than PSQ.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PSQ	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Direct Digital	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Does the MarketBeat Community believe in PSQH or DRCT?

Direct Digital received 11 more outperform votes than PSQ when rated by MarketBeat users. However, 100.00% of users gave PSQ an outperform vote while only 73.68% of users gave Direct Digital an outperform vote.

Company	Underperform	Outperform
PSQ	Outperform Votes 3 100.00%	Underperform Votes No Votes
Direct Digital	Outperform Votes 14 73.68%	Underperform Votes 5 26.32%

Is PSQH or DRCT more profitable?

Direct Digital has a net margin of 1.26% compared to Direct Digital's net margin of -674.94%. PSQ's return on equity of 48.38% beat Direct Digital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PSQ	-674.94%	-762.28%	-62.43%
Direct Digital	1.26%	48.38%	3.30%

Does the media prefer PSQH or DRCT?

In the previous week, Direct Digital had 3 more articles in the media than PSQ. MarketBeat recorded 11 mentions for Direct Digital and 8 mentions for PSQ. PSQ's average media sentiment score of 0.42 beat Direct Digital's score of -0.25 indicating that Direct Digital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PSQ	0 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Direct Digital	0 Very Positive mention(s)	0 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do institutionals and insiders hold more shares of PSQH or DRCT?

17.3% of PSQ shares are owned by institutional investors. Comparatively, 4.0% of Direct Digital shares are owned by institutional investors. 32.1% of PSQ shares are owned by company insiders. Comparatively, 80.8% 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.

Which has stronger valuation & earnings, PSQH or DRCT?

Direct Digital has higher revenue and earnings than PSQ. PSQ is trading at a lower price-to-earnings ratio than Direct Digital, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PSQ	$5.69M	17.55	-$53.33M	-$24.27	-0.15
Direct Digital	$157.11M	0.30	$1.99M	$0.14	23.21

Which has more risk and volatility, PSQH or DRCT?

PSQ has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 8.24, meaning that its share price is 724% more volatile than the S&P 500.

Summary

Direct Digital beats PSQ on 13 of the 17 factors compared between the two stocks.