DoubleDown Interactive (NASDAQ:DDI – Get Free Report) and Allied Gaming & Entertainment (NASDAQ:AGAE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares DoubleDown Interactive and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DoubleDown Interactive | 31.91% | 12.44% | 11.50% |
| Allied Gaming & Entertainment | -253.19% | -10.27% | -6.50% |
Analyst Recommendations
This is a summary of current recommendations and price targets for DoubleDown Interactive and Allied Gaming & Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DoubleDown Interactive | 0 | 0 | 3 | 1 | 3.25 |
| Allied Gaming & Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Insider and Institutional Ownership
3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 39.4% of Allied Gaming & Entertainment shares are held by insiders. 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.
Earnings & Valuation
This table compares DoubleDown Interactive and Allied Gaming & Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DoubleDown Interactive | $341.33 million | 1.40 | $124.11 million | $2.15 | 4.49 |
| Allied Gaming & Entertainment | $9.08 million | 4.90 | -$16.76 million | ($0.51) | -2.29 |
DoubleDown Interactive has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DoubleDown Interactive has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Summary
DoubleDown Interactive beats Allied Gaming & Entertainment 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 Allied Gaming & Entertainment
Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.
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