Trivago (NASDAQ:TRVG) & Digerati Technologies (NASDAQ:DTGI) Critical Analysis

Trivago (NASDAQ:TRVG) and Digerati Technologies (OTCMKTS:DTGI) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Trivago and Digerati Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trivago 0 2 1 0 2.33
Digerati Technologies 0 0 0 0 N/A

Trivago currently has a consensus price target of $5.50, suggesting a potential upside of 11.34%. Given Trivago’s higher probable upside, research analysts plainly believe Trivago is more favorable than Digerati Technologies.

Valuation & Earnings

This table compares Trivago and Digerati Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trivago $1.07 billion 1.61 -$25.38 million ($0.07) -70.57
Digerati Technologies $2.00 million 2.06 -$3.16 million N/A N/A

Digerati Technologies has lower revenue, but higher earnings than Trivago.

Profitability

This table compares Trivago and Digerati Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trivago 4.27% 4.10% 3.19%
Digerati Technologies -69.78% N/A -96.61%

Risk & Volatility

Trivago has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Digerati Technologies has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500.

Insider and Institutional Ownership

9.7% of Trivago shares are owned by institutional investors. 8.0% of Digerati Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Trivago beats Digerati Technologies on 7 of the 11 factors compared between the two stocks.

Trivago Company Profile

trivago N.V., together with its subsidiaries, operates as a hotel and accommodation search platform. It offers online meta-search for hotels by facilitating consumers' search for hotel accommodation through online travel agents, hotel chains, and independent hotels. The company provides access to its platform through 55 localized Websites and apps in 33 languages. As of December 31, 2018, its hotel search platform offered access to approximately 3.0 million hotels and other types of accommodation worldwide. The company was founded in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Group, Inc.

Digerati Technologies Company Profile

Digerati Technologies, Inc. is a holding company, which through its subsidiaries, engages in the provision of cloud telephony services. Its services include fully hosted IP/PBX, mobile applications, voice over Internet protocol (VoIP) transport, SIP trunking, and customized VoIP services. It also offers oilfield services. The company was founded by Arthur L. Smith on December 17, 1993 and is headquartered in San Antonio, TX.

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