NEXON (OTCMKTS:NEXOY) & DoubleDown Interactive (NASDAQ:DDI) Critical Comparison

DoubleDown Interactive (NASDAQ:DDI) and NEXON (OTCMKTS:NEXOY) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DoubleDown Interactive and NEXON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	3	2	0	2.40
NEXON	0	2	2	0	2.50

DoubleDown Interactive currently has a consensus target price of $18.33, suggesting a potential upside of 43.79%. Given DoubleDown Interactive’s higher possible upside, equities analysts clearly believe DoubleDown Interactive is more favorable than NEXON.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	32.91%	12.93%	11.81%
NEXON	26.37%	12.45%	9.72%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleDown Interactive	$359.94 million	1.76	$102.50 million	$2.52	5.06
NEXON	$3.18 billion	5.02	$616.75 million	C$1.11	18.11

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

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.