Head-To-Head Comparison: DoubleDown Interactive (NASDAQ:DDI) and Warner Bros. Discovery (NASDAQ:WBD)

Warner Bros. Discovery (NASDAQ:WBD) and DoubleDown Interactive (NASDAQ:DDI) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Warner Bros. Discovery has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Warner Bros. Discovery and DoubleDown Interactive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warner Bros. Discovery	$37.30 billion	1.92	$727.00 million	($1.27)	-22.48
DoubleDown Interactive	$380.04 million	1.68	$102.50 million	$2.52	5.12

Warner Bros. Discovery has higher revenue and earnings than DoubleDown Interactive. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Warner Bros. Discovery and DoubleDown Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warner Bros. Discovery	3	12	6	2	2.30
DoubleDown Interactive	0	3	2	0	2.40

Warner Bros. Discovery presently has a consensus target price of $27.69, suggesting a potential downside of 3.01%. DoubleDown Interactive has a consensus target price of $18.33, suggesting a potential upside of 42.23%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe DoubleDown Interactive is more favorable than Warner Bros. Discovery.

Profitability

This table compares Warner Bros. Discovery and DoubleDown Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warner Bros. Discovery	-8.77%	-8.91%	-3.20%
DoubleDown Interactive	32.91%	12.93%	11.81%

Insider and Institutional Ownership

60.0% of Warner Bros. Discovery shares are held by institutional investors. 0.7% of Warner Bros. Discovery shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Warner Bros. Discovery beats DoubleDown Interactive on 8 of the 15 factors compared between the two stocks.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.

About DoubleDown Interactive

DoubleDown Interactive Co., Ltd. engages in the development and publishing of casual games and mobile applications in South Korea. It publishes digital gaming content on mobile and web platforms. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and cash me out games, as well as sells in-game virtual chips. Its games are primarily distributed, marketed, and promoted through third party platform providers. The company was formerly known as The8Games Co., Ltd. and changed its name to DoubleDown Interactive Co., Ltd. in December 2019. The company was incorporated in 2008 and is headquartered in Seoul, South Korea. DoubleDown Interactive Co., Ltd. is a subsidiary of DoubleU Games Co., Ltd.