Direct Digital (DRCT) Competitors

Direct Digital (NASDAQ:DRCT) and FiscalNote (NYSE:NOTE) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership, media sentiment, valuation and community ranking.

Which has more volatility and risk, DRCT or NOTE?

Direct Digital has a beta of 7.45, meaning that its stock price is 645% more volatile than the S&P 500. Comparatively, FiscalNote has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Does the MarketBeat Community prefer DRCT or NOTE?

FiscalNote received 61 more outperform votes than Direct Digital when rated by MarketBeat users. However, 73.68% of users gave Direct Digital an outperform vote while only 70.09% of users gave FiscalNote an outperform vote.

Company	Underperform	Outperform
Direct Digital	Outperform Votes 14 73.68%	Underperform Votes 5 26.32%
FiscalNote	Outperform Votes 75 70.09%	Underperform Votes 32 29.91%

Is DRCT or NOTE more profitable?

Direct Digital has a net margin of -5.61% compared to FiscalNote's net margin of -22.27%. Direct Digital's return on equity of -25.66% beat FiscalNote's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Direct Digital	-5.61%	-25.66%	-10.40%
FiscalNote	-22.27%	-88.72%	-22.29%

Do analysts prefer DRCT or NOTE?

Direct Digital presently has a consensus target price of $21.00, indicating a potential upside of 1,237.58%. FiscalNote has a consensus target price of $2.60, indicating a potential upside of 224.92%. Given Direct Digital's higher probable upside, equities research analysts plainly believe Direct Digital is more favorable than FiscalNote.

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

Does the media favor DRCT or NOTE?

In the previous week, FiscalNote had 11 more articles in the media than Direct Digital. MarketBeat recorded 29 mentions for FiscalNote and 18 mentions for Direct Digital. Direct Digital's average media sentiment score of -0.09 beat FiscalNote's score of -0.29 indicating that Direct Digital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Direct Digital	1 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
FiscalNote	1 Very Positive mention(s)	2 Positive mention(s)	11 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has preferable valuation and earnings, DRCT or NOTE?

Direct Digital has higher revenue and earnings than FiscalNote. FiscalNote 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
Direct Digital	$157.11M	0.15	-$2.19M	-$1.17	-1.34
FiscalNote	$132.65M	0.84	-$115.46M	-$0.22	-3.64

Do institutionals and insiders believe in DRCT or NOTE?

4.0% of Direct Digital shares are owned by institutional investors. Comparatively, 54.3% of FiscalNote shares are owned by institutional investors. 80.8% of Direct Digital shares are owned by insiders. Comparatively, 47.6% of FiscalNote shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Direct Digital beats FiscalNote on 11 of the 18 factors compared between the two stocks.