Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) and DoubleDown Interactive (NASDAQ:DDI – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares Monarch Casino & Resort and DoubleDown Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monarch Casino & Resort | 19.62% | 19.98% | 15.21% |
| DoubleDown Interactive | 28.48% | 11.27% | 10.32% |
Valuation & Earnings
This table compares Monarch Casino & Resort and DoubleDown Interactive”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monarch Casino & Resort | $545.12 million | 3.83 | $101.39 million | $5.90 | 19.94 |
| DoubleDown Interactive | $359.94 million | 1.51 | $102.50 million | $2.07 | 5.31 |
DoubleDown Interactive has lower revenue, but higher earnings than Monarch Casino & Resort. DoubleDown Interactive is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Monarch Casino & Resort has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Monarch Casino & Resort and DoubleDown Interactive, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monarch Casino & Resort | 0 | 4 | 2 | 0 | 2.33 |
| DoubleDown Interactive | 0 | 3 | 3 | 0 | 2.50 |
Monarch Casino & Resort presently has a consensus price target of $109.50, suggesting a potential downside of 6.90%. DoubleDown Interactive has a consensus price target of $18.75, suggesting a potential upside of 70.61%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe DoubleDown Interactive is more favorable than Monarch Casino & Resort.
Insider and Institutional Ownership
62.4% of Monarch Casino & Resort shares are owned by institutional investors. 26.3% of Monarch Casino & Resort shares are owned by company 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
Monarch Casino & Resort beats DoubleDown Interactive on 9 of the 14 factors compared between the two stocks.
About Monarch Casino & Resort
Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.
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.
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