WallStSmart

Doubledown Interactive Co Ltd (DDI)vsSohu.Com Inc (SOHU)

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Smart Verdict

WallStSmart Research — data-driven comparison

Sohu.Com Inc generates 58% more annual revenue ($599.25M vs $380.04M). SOHU leads profitability with a 38.2% profit margin vs 32.9%. SOHU trades at a lower P/E of 1.8x. 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

SOHU

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIFair Value (-4.3%)

Margin of Safety

-4.3%

Fair Value

$8.10

Current Price

$12.60

$4.50 premium

UndervaluedFair: $8.10Overvalued
SOHUUndervalued (+67.5%)

Margin of Safety

+67.5%

Fair Value

$50.53

Current Price

$13.68

$36.86 discount

UndervaluedFair: $50.53Overvalued

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
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

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.2%10/10

Keeps 38 of every $100 in revenue as profit

Altman Z-ScoreHealth
3.3310/10

Safe zone — low bankruptcy risk

Areas to Watch

DDI2 concerns · Avg: 3.0/10
Market CapQuality
$628.34M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SOHU4 concerns · Avg: 2.0/10
Market CapQuality
$413.40M3/10

Smaller company, higher risk/reward

PEG RatioValuation
21.442/10

Expensive relative to growth rate

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

Operating MarginProfitability
-13.5%1/10

Operating margin of -13.5%

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 : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.2% and operating margin at -13.5%.

Bear Case : DDI

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

Bear Case : SOHU

The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

DDI carries more volatility with a beta of 1.03 — expect wider price swings.

DDI is growing revenue faster at 11.2% — sustainability is the question.

Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DDI scores higher overall (70/100 vs 55/100), backed by strong 32.9% margins and 11.2% revenue growth. SOHU offers better value entry with a 67.5% margin of safety. 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.

Sohu.Com Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China

Sohu.com Limited provides online media, games and search products and services on PC and mobile devices in China. The company is headquartered in Beijing, China.

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