Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital advertising technologist Digital Generation
With that in mind, let's take a closer look at Digital Generation's business and see what CAPS investors are saying about the stock right now.
Digital Generation facts
| Headquarters (Founded) | Irving, Texas (1991) |
| Market Cap | $396 million |
| Industry | Communications equipment |
| Trailing-12-Month Revenue | $297.3 million |
| Management | CEO Scott Ginsburg (since 2003) CFO Omar Choucair (since 1999) |
| Return on Equity (Average, Past 3 Years) | 7.3% |
| Cash/Debt | $72.4 million / $484 million |
| Competitors |
Akamai Technologies Microsoft |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 240 members who have rated Digital Generation believe the stock will outperform the S&P 500 going forward. These bulls include All-Star dockofthebay, who is ranked in the top 5% of our community, and MagicDiligence.
This past summer, CAPS All-Star dockofthebay tapped Digital Generation as a cheap way to go for growth: "Its shares are selling for close to book value. ... Analysts are still predicting strong earnings growth."
Over the next five years, in fact, Digital Generation is expected to grow its bottom line at a brisk rate of 21% annually. That's faster than much larger rivals like Akamai (14%), Google (19%), and Microsoft (11%).
CAPS member MagicDiligence elaborates on the bull case:
DG provides digital delivery of traditional television and radio spots, as opposed to traditional physical "dub and ship" methods. The transition alone is attractive enough, as both television and radio move to digital distribution technologies. DG has also entered the online video ad creation/distribution business and integrated it with its TV offerings, creating a way to distribute video ads between the two mediums. There are a lot of underlying growth trends at play here.
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