DoubleDown Interactive (NASDAQ:DDI – Get Free Report) and Golden Entertainment (NASDAQ:GDEN – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Insider & Institutional Ownership
70.7% of Golden Entertainment shares are held by institutional investors. 30.5% of Golden Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares DoubleDown Interactive and Golden Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DoubleDown Interactive | $341.33 million | N/A | $124.11 million | $2.30 | 3.67 |
| Golden Entertainment | $666.82 million | 1.08 | $50.73 million | $0.18 | 153.22 |
DoubleDown Interactive has higher earnings, but lower revenue than Golden Entertainment. DoubleDown Interactive is trading at a lower price-to-earnings ratio than Golden Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for DoubleDown Interactive and Golden Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DoubleDown Interactive | 0 | 2 | 4 | 0 | 2.67 |
| Golden Entertainment | 0 | 5 | 3 | 0 | 2.38 |
DoubleDown Interactive presently has a consensus price target of $18.60, indicating a potential upside of 120.64%. Golden Entertainment has a consensus price target of $32.75, indicating a potential upside of 18.75%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, equities research analysts clearly believe DoubleDown Interactive is more favorable than Golden Entertainment.
Profitability
This table compares DoubleDown Interactive and Golden Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DoubleDown Interactive | 32.94% | 12.92% | 11.89% |
| Golden Entertainment | 0.85% | 1.20% | 0.52% |
Risk and Volatility
DoubleDown Interactive has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Golden Entertainment has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Summary
DoubleDown Interactive beats Golden Entertainment on 8 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 Golden Entertainment
Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.
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