WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sohu.Com Inc generates 59% more annual revenue ($589.97M vs $370.57M). SOHU leads profitability with a 35.2% profit margin vs 30.8%. SOHU trades at a lower P/E of 1.7x. 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

54

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 7.3Quality: 7.3
Piotroski: 5/9Altman Z: 3.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIOvervalued (-7.1%)

Margin of Safety

-7.1%

Fair Value

$7.89

Current Price

$11.56

$3.67 premium

UndervaluedFair: $7.89Overvalued
SOHUUndervalued (+67.5%)

Margin of Safety

+67.5%

Fair Value

$50.45

Current Price

$13.76

$36.69 discount

UndervaluedFair: $50.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI6 strengths · Avg: 10.0/10
P/E RatioValuation
4.9x10/10

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

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.2%10/10

Keeps 35 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
$562.93M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SOHU4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Market CapQuality
$393.25M3/10

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%

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 : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.2% and operating margin at -4.8%.

Bear Case : DDI

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

Bear Case : SOHU

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

Key Dynamics to Monitor

DDI profiles as a mature stock while SOHU 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.

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

Bottom Line

DDI scores higher overall (70/100 vs 54/100), backed by strong 30.8% margins and 12.7% 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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