Digerati Technologies (OTCMKTS:DTGI) and Leaf Group (NYSE:LEAF) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
This table compares Digerati Technologies and Leaf Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
68.4% of Leaf Group shares are owned by institutional investors. 8.0% of Digerati Technologies shares are owned by company insiders. Comparatively, 11.4% of Leaf Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Digerati Technologies and Leaf Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Leaf Group has a consensus price target of $9.00, indicating a potential upside of 2.97%. Given Leaf Group’s higher probable upside, analysts plainly believe Leaf Group is more favorable than Digerati Technologies.
Valuation & Earnings
This table compares Digerati Technologies and Leaf Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digerati Technologies||$6.28 million||2.82||-$3.38 million||N/A||N/A|
|Leaf Group||$154.96 million||2.02||-$26.84 million||N/A||N/A|
Digerati Technologies has higher earnings, but lower revenue than Leaf Group.
Volatility and Risk
Digerati Technologies has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Leaf Group has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.
Leaf Group beats Digerati Technologies on 8 of the 12 factors compared between the two stocks.
Digerati Technologies Company Profile
Digerati Technologies, Inc., through its subsidiaries, provides Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet-based services, including voice over Internet protocol (VoIP) transport, customized VoIP, session initiation protocol trunking, fully hosted IP/private branch exchange, call center applications, auto attendant, voice and Web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and other customized IP/PBX features in a hosted or cloud environment; enterprise-class data and connectivity solutions, such as cloud WAN (wide area network) or software-defined WAN, fiber, mobile broadband, and Ethernet over copper; and remote network monitoring, data backup, and disaster recovery services. It primarily serves small to medium-sized businesses, enterprise customers, and other resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.
Leaf Group Company Profile
Leaf Group Ltd., together with its subsidiaries, operates as a diversified consumer internet company worldwide. It operates in two segments, Marketplaces and Media. The Marketplaces segment offers Society6.com, which provides artists with an online commerce platform to feature and sell their original art and designs on consumer products in the wall art, home dÃ©cor, and tech and apparel accessories categories. It also provides SaatchiArt.com and its related art fair event brand, which is an online art gallery where a global community of artists exhibit and sell their original artwork directly to consumers. The Media segment offers Well+Good, a health and wellness media brand that offers journalistic approach to content; and Livestrong.com, a destination and action-oriented community, as well as mobile applications, such as MyPlate that monitor users' health, fitness, and life achievements. This segment also provides Hunker, a home design media site for enabling first-time homeowners enhance their homes with practical solutions, home tours, and design advice for people; and Only In Your State, a US-focused local attractions and review site, which highlights small businesses, hidden gems, and natural wonders for the audience. In addition, this segment offers content creation, traffic source, mobile application, and monetization services; and develops partner sites. It sells its products through wholesale channels to trade and hospitality clients, as well as through retail distribution partners. The company was formerly known as Demand Media, Inc. and changed its name to Leaf Group Ltd. in November 2016. Leaf Group Ltd. was incorporated in 2006 and is headquartered in Santa Monica, California.
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