DoubleDown Interactive (NASDAQ:DDI) and Nintendo (OTCMKTS:NTDOY) Head-To-Head Survey

DoubleDown Interactive (NASDAQ:DDI) and Nintendo (OTCMKTS:NTDOY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	3	2	0	2.40
Nintendo	1	4	2	1	2.38

DoubleDown Interactive presently has a consensus target price of $15.67, indicating a potential upside of 30.88%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than Nintendo.

Risk and Volatility

DoubleDown Interactive has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Earnings and Valuation

This table compares DoubleDown Interactive and Nintendo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleDown Interactive	$359.94 million	1.65	$102.50 million	$2.30	5.20
Nintendo	$15.37 billion	3.81	$2.82 billion	$0.60	18.97

Nintendo has higher revenue and earnings than DoubleDown Interactive. DoubleDown Interactive is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	30.77%	12.16%	11.12%
Nintendo	18.33%	13.82%	10.70%

Insider and Institutional Ownership

0.0% of Nintendo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Nintendo beats DoubleDown Interactive on 7 of the 13 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 Nintendo

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.