China Networks International (OTCMKTS:CNWHF – Get Rating) and Direct Digital (NASDAQ:DRCT – Get Rating) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Risk & Volatility
China Networks International has a beta of -10.78, meaning that its share price is 1,178% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 4.98, meaning that its share price is 398% more volatile than the S&P 500.
Earnings and Valuation
This table compares China Networks International and Direct Digital’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Networks International | N/A | N/A | N/A | N/A | N/A |
| Direct Digital | $88.04 million | 0.47 | $2.92 million | $0.16 | 17.81 |
Institutional & Insider Ownership
7.3% of Direct Digital shares are held by institutional investors. 1.4% of China Networks International shares are held by insiders. Comparatively, 78.3% of Direct Digital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares China Networks International and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Networks International | N/A | N/A | N/A |
| Direct Digital | 3.32% | 76.00% | 6.47% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for China Networks International and Direct Digital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Networks International | 0 | 0 | 0 | 0 | N/A |
| Direct Digital | 0 | 0 | 3 | 0 | 3.00 |
Direct Digital has a consensus price target of $7.50, suggesting a potential upside of 163.16%.
Summary
Direct Digital beats China Networks International on 8 of the 8 factors compared between the two stocks.
About China Networks International
China Networks International Holdings Ltd. is a shell company with non-operating subsidiaries. It seeks potential business combination with one or more yet to be identified privately held companies and attempts to engage in another business through its subsidiaries and variable interest entities. The company was founded on August 16, 2006 and is headquartered in Beijing, China.
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, etc. with focus on small- and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.
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