Reviewing Agora (NASDAQ:API) & Digital Turbine (NASDAQ:APPS)

Digital Turbine (NASDAQ:APPS) and Agora (NASDAQ:API) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

63.7% of Digital Turbine shares are owned by institutional investors. Comparatively, 40.4% of Agora shares are owned by institutional investors. 6.0% of Digital Turbine shares are owned by insiders. Comparatively, 14.6% of Agora shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Digital Turbine and Agora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Turbine	-4.46%	38.34%	8.27%
Agora	7.23%	1.96%	1.52%

Risk and Volatility

Digital Turbine has a beta of 3.02, indicating that its share price is 202% more volatile than the S&P 500. Comparatively, Agora has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Digital Turbine and Agora, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Turbine	1	2	5	0	2.50
Agora	0	2	1	0	2.33

Digital Turbine presently has a consensus price target of $14.80, suggesting a potential upside of 39.23%. Agora has a consensus price target of $6.80, suggesting a potential upside of 63.86%. Given Agora’s higher possible upside, analysts plainly believe Agora is more favorable than Digital Turbine.

Valuation and Earnings

This table compares Digital Turbine and Agora”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Turbine	$565.25 million	2.28	-$37.73 million	($0.26)	-40.88
Agora	$141.06 million	2.57	$9.53 million	$0.11	37.73

Agora has lower revenue, but higher earnings than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Agora, indicating that it is currently the more affordable of the two stocks.

About Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.