Digerati Technologies (OTCMKTS:DTGI – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Insider & Institutional Ownership
65.7% of Applied Digital shares are held by institutional investors. 25.6% of Digerati Technologies shares are held by insiders. Comparatively, 11.8% of Applied Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Digerati Technologies and Applied Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digerati Technologies | -44.32% | N/A | -35.63% |
| Applied Digital | -74.95% | -88.87% | -20.16% |
Risk and Volatility
Earnings and Valuation
This table compares Digerati Technologies and Applied Digital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digerati Technologies | $31.62 million | 0.15 | -$8.29 million | ($0.09) | -0.29 |
| Applied Digital | $165.57 million | 9.33 | -$149.27 million | ($1.17) | -6.13 |
Digerati Technologies has higher earnings, but lower revenue 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.
Analyst Recommendations
This is a summary of current ratings and target prices for Digerati Technologies and Applied Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digerati Technologies | 0 | 0 | 0 | 0 | 0.00 |
| Applied Digital | 0 | 0 | 6 | 0 | 3.00 |
Applied Digital has a consensus target price of $10.50, suggesting a potential upside of 46.44%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Applied Digital is more favorable than Digerati Technologies.
Summary
Applied Digital beats Digerati Technologies on 8 of the 14 factors compared between the two stocks.
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.
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.
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