DoubleDown Interactive (NASDAQ:DDI – Get Free Report) and Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Volatility and Risk
DoubleDown Interactive has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Valuation & Earnings
This table compares DoubleDown Interactive and Warner Bros. Discovery”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DoubleDown Interactive | $359.94 million | 1.76 | $102.50 million | $2.52 | 5.08 |
| Warner Bros. Discovery | $36.12 billion | 2.00 | $727.00 million | ($1.27) | -22.69 |
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 breakdown of current recommendations and price targets for DoubleDown Interactive and Warner Bros. Discovery, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DoubleDown Interactive | 0 | 3 | 2 | 0 | 2.40 |
| Warner Bros. Discovery | 2 | 13 | 6 | 2 | 2.35 |
DoubleDown Interactive currently has a consensus target price of $18.33, suggesting a potential upside of 43.23%. Warner Bros. Discovery has a consensus target price of $27.69, suggesting a potential downside of 3.88%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, research analysts clearly believe DoubleDown Interactive is more favorable than Warner Bros. Discovery.
Profitability
This table compares DoubleDown Interactive and Warner Bros. Discovery’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DoubleDown Interactive | 32.91% | 12.93% | 11.81% |
| Warner Bros. Discovery | -8.77% | -8.91% | -3.20% |
Insider and Institutional Ownership
60.0% of Warner Bros. Discovery shares are owned by institutional investors. 0.7% of Warner Bros. Discovery shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Warner Bros. Discovery beats DoubleDown Interactive on 8 of the 15 factors compared between the two stocks.
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.
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.
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