Nintendo (OTCMKTS:NTDOY – 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 institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Volatility and Risk
Nintendo has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nintendo and DoubleDown Interactive”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nintendo | $15.37 billion | 3.74 | $2.82 billion | $0.60 | 18.58 |
| DoubleDown Interactive | $359.94 million | 1.61 | $102.50 million | $2.30 | 5.09 |
Nintendo has higher revenue and earnings than DoubleDown Interactive. DoubleDown Interactive is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nintendo and DoubleDown Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nintendo | 18.33% | 13.82% | 10.70% |
| DoubleDown Interactive | 30.77% | 12.16% | 11.12% |
Insider and Institutional Ownership
0.0% of Nintendo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Nintendo and DoubleDown Interactive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nintendo | 1 | 4 | 2 | 1 | 2.38 |
| DoubleDown Interactive | 0 | 3 | 2 | 0 | 2.40 |
DoubleDown Interactive has a consensus target price of $15.67, indicating a potential upside of 33.90%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than Nintendo.
Summary
Nintendo beats DoubleDown Interactive on 7 of the 13 factors compared between the two stocks.
About Nintendo
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.
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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