UbiSoft Entertainment (OTCMKTS:UBSFY) vs. DoubleDown Interactive (NASDAQ:DDI) Critical Review

UbiSoft Entertainment (OTCMKTS:UBSFY) and DoubleDown Interactive (NASDAQ:DDI) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility & Risk

UbiSoft Entertainment has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of UbiSoft Entertainment shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for UbiSoft Entertainment and DoubleDown Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UbiSoft Entertainment	0	0	0	1	4.00
DoubleDown Interactive	0	3	3	0	2.50

DoubleDown Interactive has a consensus target price of $18.75, suggesting a potential upside of 61.64%. Given DoubleDown Interactive’s higher probable upside, analysts clearly believe DoubleDown Interactive is more favorable than UbiSoft Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UbiSoft Entertainment	N/A	N/A	N/A
DoubleDown Interactive	28.48%	11.27%	10.32%

Valuation and Earnings

This table compares UbiSoft Entertainment and DoubleDown Interactive”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UbiSoft Entertainment	$2.04 billion	0.37	-$170.71 million	N/A	N/A
DoubleDown Interactive	$359.94 million	1.60	$102.50 million	$2.07	5.60

DoubleDown Interactive has lower revenue, but higher earnings than UbiSoft Entertainment.

Summary

DoubleDown Interactive beats UbiSoft Entertainment on 8 of the 12 factors compared between the two stocks.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.

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.