Comparing DoubleDown Interactive (NASDAQ:DDI) and MGM Resorts International (NYSE:MGM)

MGM Resorts International (NYSE:MGM) and DoubleDown Interactive (NASDAQ:DDI) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Institutional & Insider Ownership

68.1% of MGM Resorts International shares are held by institutional investors. 3.1% of MGM Resorts International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

MGM Resorts International has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares MGM Resorts International and DoubleDown Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGM Resorts International	1.17%	26.04%	2.19%
DoubleDown Interactive	28.48%	11.27%	10.32%

Analyst Ratings

This is a breakdown of current ratings and target prices for MGM Resorts International and DoubleDown Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGM Resorts International	4	7	8	1	2.30
DoubleDown Interactive	0	2	3	0	2.60

MGM Resorts International currently has a consensus price target of $41.94, indicating a potential upside of 14.99%. DoubleDown Interactive has a consensus price target of $18.75, indicating a potential upside of 113.07%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe DoubleDown Interactive is more favorable than MGM Resorts International.

Earnings and Valuation

This table compares MGM Resorts International and DoubleDown Interactive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGM Resorts International	$17.54 billion	0.53	$205.86 million	$0.75	48.63
DoubleDown Interactive	$359.94 million	N/A	$102.50 million	$2.07	4.25

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

Summary

MGM Resorts International beats DoubleDown Interactive on 9 of the 14 factors compared between the two stocks.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

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.