WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sohu.Com Inc generates 62% more annual revenue ($584.33M vs $359.94M). SOHU leads profitability with a 67.4% profit margin vs 28.5%. SOHU trades at a lower P/E of 1.1x. DDI earns a higher WallStSmart Score of 60/100 (C+).

DDI

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 8.5Value: 7.7Quality: 5.0

SOHU

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$11.56

Current Price

$11.60

$0.04 discount

UndervaluedFair: $11.56Overvalued
SOHUUndervalued (+71.1%)

Margin of Safety

+71.1%

Fair Value

$56.71

Current Price

$15.69

$41.02 discount

UndervaluedFair: $56.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI5 strengths · Avg: 9.4/10
P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.6%10/10

Strong operational efficiency at 39.6%

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
35.8%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
67.4%10/10

Keeps 67 of every $100 in revenue as profit

Areas to Watch

DDI2 concerns · Avg: 2.5/10
Market CapQuality
$574.82M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-32.5%2/10

Earnings declined 32.5%

SOHU4 concerns · Avg: 2.3/10
Market CapQuality
$472.03M3/10

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%

Free Cash FlowQuality
$-14.46M2/10

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, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 39.6%. Revenue growth of 16.9% demonstrates continued momentum.

Bull Case : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 67.4% and operating margin at -20.4%.

Bear Case : DDI

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

Bear Case : SOHU

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

Key Dynamics to Monitor

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

DDI carries more volatility with a beta of 1.01 — expect wider price swings.

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

DDI generates stronger free cash flow (42M), providing more financial flexibility.

Bottom Line

DDI scores higher overall (60/100 vs 59/100), backed by strong 28.5% margins and 16.9% revenue growth. SOHU offers better value entry with a 71.1% 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.

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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