OneConnect Financial Technology (NYSE:OCFT – Get Rating) and Direct Digital (NASDAQ:DRCT – Get Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
This table compares OneConnect Financial Technology and Direct Digital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OneConnect Financial Technology||-26.52%||-29.93%||-12.33%|
This is a breakdown of recent recommendations for OneConnect Financial Technology and Direct Digital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OneConnect Financial Technology||1||1||0||0||1.50|
Institutional and Insider Ownership
5.7% of OneConnect Financial Technology shares are owned by institutional investors. Comparatively, 2.4% of Direct Digital shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares OneConnect Financial Technology and Direct Digital’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OneConnect Financial Technology||$640.51 million||0.68||-$198.66 million||($0.50)||-2.24|
|Direct Digital||$38.14 million||0.28||N/A||N/A||N/A|
Direct Digital has lower revenue, but higher earnings than OneConnect Financial Technology.
Direct Digital beats OneConnect Financial Technology on 6 of the 9 factors compared between the two stocks.
About OneConnect Financial Technology
OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It offers digital retail banking, digital commercial banking, digital auto insurance and life insurance, and artificial intelligence customer services, as well as sales management, risk management, and operation support services. The company also operates gamma core banking system, a customer centric solution; digitalized management platform that offers digital infrastructure for financial institutions to manage various aspects of their business, including data, smart operation, comprehensive risk, and asset and liability management, as well as accounting, personnel, and office management; Gamma FinCloud, an open PaaS and IaaS platform for ready-to-integrate financial technology components; and Blockchain network-as-a-service. In addition, it operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; and offers asset management and consulting services. The company serves customers in the financial services industry, including banking, insurance, and other financial institutions. It has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People's Republic of 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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