Doubledown Interactive Co Ltd (DDI)vsNetEase Inc (NTES)
DDI
Doubledown Interactive Co Ltd
$8.37
-1.53%
COMMUNICATION SERVICES · Cap: $414.02M
NTES
NetEase Inc
$113.06
+0.82%
COMMUNICATION SERVICES · Cap: $74.82B
Smart Verdict
WallStSmart Research — data-driven comparison
NetEase Inc generates 31190% more annual revenue ($112.63B vs $359.94M). NTES leads profitability with a 30.0% profit margin vs 28.5%. DDI trades at a lower P/E of 4.0x. NTES earns a higher WallStSmart Score of 65/100 (C+).
DDI
Buy60
out of 100
Grade: C+
NTES
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.0%
Fair Value
$14.08
Current Price
$8.37
$5.71 discount
Margin of Safety
-129.0%
Fair Value
$51.75
Current Price
$113.06
$61.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 31.2%
Keeps 28 of every $100 in revenue as profit
16.9% revenue growth
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 30.2%
Generating 14.3B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Earnings declined 32.3%
Trading at 15.5x book value
3.0% revenue growth
Earnings declined 29.4%
Comparative Analysis Report
WallStSmart ResearchBull 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 : NTES
The strongest argument for NTES centers on Profit Margin, Operating Margin, Free Cash Flow. Profitability is solid with margins at 30.0% and operating margin at 30.2%. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bear Case : DDI
The primary concerns for DDI are Market Cap, EPS Growth.
Bear Case : NTES
The primary concerns for NTES are Price/Book, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
DDI profiles as a growth stock while NTES is a value play — different risk/reward profiles.
NTES carries more volatility with a beta of 0.86 — expect wider price swings.
DDI is growing revenue faster at 16.9% — sustainability is the question.
NTES generates stronger free cash flow (14.3B), providing more financial flexibility.
Bottom Line
NTES scores higher overall (65/100 vs 60/100), backed by strong 30.0% margins. DDI offers better value entry with a 40.0% margin of safety. Both earn "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.
NetEase Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China
NetEase, Inc. offers online services that focus on gaming, communication, and commerce in the People's Republic of China and internationally. The company is headquartered in Hangzhou, the People's Republic of China.
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