Reviewing DoubleDown Interactive (NASDAQ:DDI) and Archon (OTCMKTS:ARHN)

DoubleDown Interactive (NASDAQ:DDI) and Archon (OTCMKTS:ARHN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Valuation & Earnings

This table compares DoubleDown Interactive and Archon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleDown Interactive	$341.33 million	1.33	$124.11 million	$2.15	4.27
Archon	N/A	N/A	N/A	N/A	N/A

DoubleDown Interactive has higher revenue and earnings than Archon.

Volatility and Risk

DoubleDown Interactive has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Archon has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Profitability

This table compares DoubleDown Interactive and Archon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	31.91%	12.44%	11.50%
Archon	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DoubleDown Interactive and Archon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	0	3	1	3.25
Archon	0	0	0	0	0.00

DoubleDown Interactive currently has a consensus target price of $19.25, indicating a potential upside of 109.92%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe DoubleDown Interactive is more favorable than Archon.

Summary

DoubleDown Interactive beats Archon on 9 of the 9 factors compared between the two stocks.

About DoubleDown Interactive

DoubleDown Interactive Co., Ltd. engages in the development and publishing of casual games and mobile applications in South Korea. It publishes digital gaming content on mobile and web platforms. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and cash me out games, as well as sells in-game virtual chips. Its games are primarily distributed, marketed, and promoted through third party platform providers. The company was formerly known as The8Games Co., Ltd. and changed its name to DoubleDown Interactive Co., Ltd. in December 2019. The company was incorporated in 2008 and is headquartered in Seoul, South Korea. DoubleDown Interactive Co., Ltd. is a subsidiary of DoubleU Games Co., Ltd.

About Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.