WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 1965% more annual revenue ($7.85B vs $380.04M). DDI leads profitability with a 32.9% profit margin vs 13.8%. DDI trades at a lower P/E of 5.1x. 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

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIFair Value (-4.5%)

Margin of Safety

-4.5%

Fair Value

$8.09

Current Price

$12.75

$4.66 premium

UndervaluedFair: $8.09Overvalued
EASignificantly Overvalued (-80.5%)

Margin of Safety

-80.5%

Fair Value

$112.02

Current Price

$209.70

$97.68 premium

UndervaluedFair: $112.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI6 strengths · Avg: 10.0/10
P/E RatioValuation
5.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.9%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
38.7%10/10

Strong operational efficiency at 38.7%

EPS GrowthGrowth
50.5%10/10

Earnings expanding 50.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

EA5 strengths · Avg: 8.8/10
EPS GrowthGrowth
97.5%10/10

Earnings expanding 97.5% YoY

Market CapQuality
$52.92B9/10

Large-cap with strong market position

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Revenue GrowthGrowth
18.9%8/10

18.9% revenue growth

Areas to Watch

DDI2 concerns · Avg: 3.0/10
Market CapQuality
$633.29M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EA3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
59.9x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-318.00M2/10

Negative free cash flow — burning cash

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 32.9% and operating margin at 38.7%. Revenue growth of 11.2% demonstrates continued momentum.

Bull Case : EA

The strongest argument for EA centers on EPS Growth, Market Cap, Debt/Equity. Revenue growth of 18.9% demonstrates continued momentum. PEG of 1.30 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, Free Cash Flow. A P/E of 59.9x leaves little room for execution misses.

Key Dynamics to Monitor

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

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

EA is growing revenue faster at 18.9% — sustainability is the question.

DDI generates stronger free cash flow (25M), providing more financial flexibility.

Bottom Line

DDI scores higher overall (70/100 vs 67/100), backed by strong 32.9% margins and 11.2% revenue growth. Both earn "Strong Buy" and "Strong 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.

Visit Website →

Want to dig deeper into these stocks?