Contrasting DoubleDown Interactive (DDI) and Its Peers

DoubleDown Interactive (NASDAQ:DDI) is one of 185 publicly-traded companies in the “Entertainment” industry, but how does it contrast to its rivals? We will compare DoubleDown Interactive to related businesses based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, profitability, valuation and risk.

Valuation and Earnings

This table compares DoubleDown Interactive and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DoubleDown Interactive	$359.94 million	$102.50 million	6.26
DoubleDown Interactive Competitors	$4.03 billion	$67.95 million	3.14

DoubleDown Interactive’s rivals have higher revenue, but lower earnings than DoubleDown Interactive. DoubleDown Interactive is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares DoubleDown Interactive and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	29.25%	11.29%	10.32%
DoubleDown Interactive Competitors	10.16%	-30.94%	-2.61%

Risk and Volatility

DoubleDown Interactive has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, DoubleDown Interactive’s rivals have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for DoubleDown Interactive and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	4	1	0	2.20
DoubleDown Interactive Competitors	1898	4561	9691	257	2.51

DoubleDown Interactive currently has a consensus price target of $18.19, suggesting a potential upside of 15.33%. As a group, “Entertainment” companies have a potential upside of 14.63%. Given DoubleDown Interactive’s higher probable upside, equities analysts clearly believe DoubleDown Interactive is more favorable than its rivals.

Institutional and Insider Ownership

36.0% of shares of all “Entertainment” companies are held by institutional investors. 24.5% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

DoubleDown Interactive beats its rivals on 7 of the 13 factors compared.

DoubleDown Interactive Company Profile

DoubleDown Interactive is a digital gaming company focused on developing and publishing social casino games for mobile devices and online platforms. Its flagship title, DoubleDown Casino, offers virtual slot machines and other casino-style games for entertainment, using virtual currency rather than real-money wagering. The company’s portfolio also includes other free-to-play casino games, which combine casino-style play with features such as in-game rewards and social interaction. Its games are distributed through app stores and web platforms and reach players in North America and other international markets.