WallStSmart

Doubledown Interactive Co Ltd (DDI)vsElectronic Arts Inc (EA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 1932% more annual revenue ($7.53B vs $370.57M). DDI leads profitability with a 30.8% profit margin vs 11.8%. DDI trades at a lower P/E of 5.0x. DDI earns a higher WallStSmart Score of 70/100 (B).

DDI

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.3Quality: 8.5
Piotroski: 3/9Altman Z: 8.44

EA

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIOvervalued (-7.2%)

Margin of Safety

-7.2%

Fair Value

$7.88

Current Price

$11.49

$3.61 premium

UndervaluedFair: $7.88Overvalued
EASignificantly Overvalued (-88.7%)

Margin of Safety

-88.7%

Fair Value

$107.18

Current Price

$205.21

$98.03 premium

UndervaluedFair: $107.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI6 strengths · Avg: 10.0/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.8%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.4410/10

Safe zone — low bankruptcy risk

EA4 strengths · Avg: 9.0/10
EPS GrowthGrowth
85.3%10/10

Earnings expanding 85.3% YoY

Market CapQuality
$51.47B9/10

Large-cap with strong market position

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

Areas to Watch

DDI2 concerns · Avg: 3.0/10
Market CapQuality
$567.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EA2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
58.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DDI

The strongest argument for DDI centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.8% and operating margin at 37.6%. Revenue growth of 12.7% demonstrates continued momentum.

Bull Case : EA

The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 11.9% demonstrates continued momentum. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bear Case : DDI

The primary concerns for DDI are Market Cap, Piotroski F-Score.

Bear Case : EA

The primary concerns for EA are Piotroski F-Score, P/E Ratio. A P/E of 58.5x leaves little room for execution misses.

Key Dynamics to Monitor

DDI profiles as a mature stock while EA is a value play — different risk/reward profiles.

DDI carries more volatility with a beta of 1.02 — expect wider price swings.

DDI is growing revenue faster at 12.7% — sustainability is the question.

EA generates stronger free cash flow (519M), providing more financial flexibility.

Bottom Line

DDI scores higher overall (70/100 vs 65/100), backed by strong 30.8% margins and 12.7% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Doubledown Interactive Co Ltd

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

DoubleDown Interactive Co., Ltd. is engaged in the development and publication of digital games on mobile and web-based platforms for casual gamers in South Korea. The company is headquartered in Seoul, South Korea.

Electronic Arts Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.

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