DoubleDown Interactive (NASDAQ:DDI – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Valuation and Earnings
This table compares DoubleDown Interactive and Sohu.com”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DoubleDown Interactive | $342.46 million | 1.52 | $100.89 million | $2.30 | 4.57 |
| Sohu.com | $578.27 million | 0.70 | -$30.38 million | ($2.81) | -4.47 |
DoubleDown Interactive has higher earnings, but lower revenue than Sohu.com. Sohu.com 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
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DoubleDown Interactive | 0 | 0 | 4 | 0 | 3.00 |
| Sohu.com | 0 | 0 | 0 | 0 | 0.00 |
DoubleDown Interactive currently has a consensus price target of $22.67, suggesting a potential upside of 115.87%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, equities research analysts plainly believe DoubleDown Interactive is more favorable than Sohu.com.
Insider and Institutional Ownership
33.0% of Sohu.com shares are held by institutional investors. 21.1% of Sohu.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares DoubleDown Interactive and Sohu.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DoubleDown Interactive | 33.28% | 14.78% | 13.54% |
| Sohu.com | -15.14% | -7.67% | -4.23% |
Volatility and Risk
DoubleDown Interactive has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Summary
DoubleDown Interactive beats Sohu.com on 10 of the 14 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 Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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