Stran & Company, Inc. (NASDAQ:SWAG – Get Free Report) and Direct Digital (NASDAQ:DRCT – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Earnings & Valuation
This table compares Stran & Company, Inc. and Direct Digital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stran & Company, Inc. | $116.19 million | 0.36 | -$750,000.00 | $0.01 | 225.00 |
| Direct Digital | $34.69 million | 0.06 | -$18.95 million | ($201.62) | -0.02 |
Profitability
This table compares Stran & Company, Inc. and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stran & Company, Inc. | 0.33% | 1.26% | 0.73% |
| Direct Digital | -65.75% | N/A | -59.57% |
Risk & Volatility
Stran & Company, Inc. has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Direct Digital has a beta of 5.33, suggesting that its share price is 433% more volatile than the S&P 500.
Institutional & Insider Ownership
56.4% of Stran & Company, Inc. shares are owned by institutional investors. Comparatively, 4.0% of Direct Digital shares are owned by institutional investors. 49.6% of Stran & Company, Inc. shares are owned by company insiders. Comparatively, 25.6% of Direct Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings for Stran & Company, Inc. and Direct Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stran & Company, Inc. | 0 | 1 | 0 | 0 | 2.00 |
| Direct Digital | 1 | 1 | 0 | 0 | 1.50 |
Summary
Stran & Company, Inc. beats Direct Digital on 11 of the 12 factors compared between the two stocks.
About Stran & Company, Inc.
Stran & Co., Inc. engages in the provision of promotional marketing and branded merchandise services. It offers promotional product, custom manufacturing, custom packaging, warehousing, and program management. The company was founded by Andrew Shape and Andrew Stranberg in 1994 and is headquartered in Quincy, MA.
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.
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