WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 1930% more annual revenue ($7.31B vs $359.94M). DDI leads profitability with a 28.5% profit margin vs 9.3%. DDI trades at a lower P/E of 4.0x. DDI earns a higher WallStSmart Score of 60/100 (C+).

DDI

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 8.5Value: 8.3Quality: 5.0

EA

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIUndervalued (+40.0%)

Margin of Safety

+40.0%

Fair Value

$14.08

Current Price

$8.37

$5.71 discount

UndervaluedFair: $14.08Overvalued
EASignificantly Overvalued (-1018.0%)

Margin of Safety

-1018.0%

Fair Value

$18.09

Current Price

$202.34

$184.25 premium

UndervaluedFair: $18.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI5 strengths · Avg: 9.4/10
P/E RatioValuation
4.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Profit MarginProfitability
28.5%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

EA2 strengths · Avg: 8.5/10
Market CapQuality
$50.46B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.77B8/10

Generating 1.8B in free cash flow

Areas to Watch

DDI2 concerns · Avg: 2.5/10
Market CapQuality
$414.02M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-32.3%2/10

Earnings declined 32.3%

EA4 concerns · Avg: 3.5/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

P/E RatioValuation
75.8x2/10

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, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 31.2%. Revenue growth of 16.9% demonstrates continued momentum.

Bull Case : EA

The strongest argument for EA centers on Market Cap, Free Cash Flow.

Bear Case : DDI

The primary concerns for DDI are Market Cap, EPS Growth.

Bear Case : EA

The primary concerns for EA are PEG Ratio, Price/Book, Revenue Growth. A P/E of 75.8x leaves little room for execution misses.

Key Dynamics to Monitor

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

DDI carries more volatility with a beta of 0.83 — expect wider price swings.

DDI is growing revenue faster at 16.9% — sustainability is the question.

EA generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

DDI scores higher overall (60/100 vs 41/100), backed by strong 28.5% margins and 16.9% revenue growth. Both earn "Buy" and "Hold" 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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