Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK – Get Free Report) and Direct Digital (NASDAQ:DRCT – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
92.3% of Liberty Media Corporation – Liberty Formula One Series C shares are held by institutional investors. Comparatively, 4.0% of Direct Digital shares are held by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series C shares are held by company insiders. Comparatively, 25.6% of Direct Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Liberty Media Corporation – Liberty Formula One Series C and Direct Digital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Media Corporation – Liberty Formula One Series C | $4.48 billion | 4.74 | $152.55 million | $0.68 | 139.13 |
| Direct Digital | $34.69 million | 0.04 | -$18.95 million | ($156.85) | -0.01 |
Liberty Media Corporation – Liberty Formula One Series C has higher revenue and earnings than Direct Digital. Direct Digital is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series C, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series C and Direct Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Media Corporation – Liberty Formula One Series C | 0 | 3 | 5 | 0 | 2.62 |
| Direct Digital | 1 | 0 | 0 | 0 | 1.00 |
Liberty Media Corporation – Liberty Formula One Series C presently has a consensus target price of $117.57, indicating a potential upside of 24.27%. Given Liberty Media Corporation – Liberty Formula One Series C’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Liberty Media Corporation – Liberty Formula One Series C is more favorable than Direct Digital.
Profitability
This table compares Liberty Media Corporation – Liberty Formula One Series C and Direct Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Media Corporation – Liberty Formula One Series C | N/A | N/A | N/A |
| Direct Digital | -74.38% | N/A | -68.48% |
Risk & Volatility
Liberty Media Corporation – Liberty Formula One Series C has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Direct Digital has a beta of 5.3, meaning that its stock price is 430% more volatile than the S&P 500.
Summary
Liberty Media Corporation – Liberty Formula One Series C beats Direct Digital on 11 of the 13 factors compared between the two stocks.
About Liberty Media Corporation – Liberty Formula One Series C
Formula One Group, through its subsidiary Formula 1, engages in the motorsports business in the United States and internationally. The company holds commercial rights for the FIA Formula One world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. It is also involved in the operation of the Formula 1 Paddock Club hospitality program; and provision of freight, logistical, and travel related services for the teams and other third parties, as well as the F2 and F3 race series. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation.
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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