Applied Digital (NASDAQ:APLD – Get Free Report) and Digerati Technologies (OTCMKTS:DTGI – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Risk & Volatility
Applied Digital has a beta of 4.65, meaning that its stock price is 365% more volatile than the S&P 500. Comparatively, Digerati Technologies has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500.
Profitability
This table compares Applied Digital and Digerati Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -74.95% | -88.87% | -20.16% |
| Digerati Technologies | -44.32% | N/A | -35.63% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $165.57 million | 9.20 | -$149.27 million | ($1.17) | -6.04 |
| Digerati Technologies | $31.62 million | 0.07 | -$8.29 million | ($0.09) | -0.13 |
Digerati Technologies has lower revenue, but higher earnings than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Digerati Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
65.7% of Applied Digital shares are owned by institutional investors. 11.8% of Applied Digital shares are owned by insiders. Comparatively, 25.6% of Digerati Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Applied Digital and Digerati Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 0 | 0 | 6 | 0 | 3.00 |
| Digerati Technologies | 0 | 0 | 0 | 0 | 0.00 |
Applied Digital currently has a consensus target price of $10.50, indicating a potential upside of 48.51%. Given Applied Digital’s stronger consensus rating and higher probable upside, equities analysts clearly believe Applied Digital is more favorable than Digerati Technologies.
Summary
Applied Digital beats Digerati Technologies on 8 of the 13 factors compared between the two stocks.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About Digerati Technologies
Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added 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.
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