It depends. Directories are not all bad. Think about it beyond the SEO perspective - any business should list itself in directories that would bring customers. One thing you should never do is pay for a directory listing - that's a paid link and we all know how Google feels about those.
Regarding your competitors, there are so many other factors that could be contributing to their rankings (domain age, keywords in URL, site architecture, unique linking domains, quality of on-site content, social media sharing) that I would not consider the directories as a major source of juice.