Reading International (NASDAQ:RDI – Get Free Report) and DoubleDown Interactive (NASDAQ:DDI – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Profitability
This table compares Reading International and DoubleDown Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reading International | -5.87% | N/A | -2.91% |
| DoubleDown Interactive | 32.91% | 12.93% | 11.81% |
Analyst Ratings
This is a summary of current ratings and target prices for Reading International and DoubleDown Interactive, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reading International | 1 | 0 | 0 | 0 | 1.00 |
| DoubleDown Interactive | 0 | 3 | 2 | 0 | 2.40 |
Risk and Volatility
Reading International has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Institutional and Insider Ownership
44.7% of Reading International shares are owned by institutional investors. 32.4% of Reading International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Reading International and DoubleDown Interactive”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reading International | $214.46 million | 0.23 | -$14.14 million | ($0.55) | -3.84 |
| DoubleDown Interactive | $359.94 million | 1.79 | $102.50 million | $2.52 | 5.16 |
DoubleDown Interactive has higher revenue and earnings than Reading International. Reading International is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.
Summary
DoubleDown Interactive beats Reading International on 12 of the 14 factors compared between the two stocks.
About Reading International
Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 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.
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