Contrasting DoubleDown Interactive (NASDAQ:DDI) and Snail (NASDAQ:SNAL)

Snail (NASDAQ:SNAL) and DoubleDown Interactive (NASDAQ:DDI) are both small-cap communication services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares Snail and DoubleDown Interactive”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snail	$81.23 million	0.28	-$27.24 million	($1.26)	-2.03
DoubleDown Interactive	$359.94 million	1.77	$102.50 million	$2.52	5.10

DoubleDown Interactive has higher revenue and earnings than Snail. Snail 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

Snail has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of Snail shares are owned by institutional investors. 66.8% of Snail shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Snail and DoubleDown Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snail	-8.83%	-15.49%	-13.52%
DoubleDown Interactive	32.91%	12.93%	11.81%

Analyst Recommendations

This is a summary of recent ratings and target prices for Snail and DoubleDown Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snail	1	1	1	0	2.00
DoubleDown Interactive	0	3	2	0	2.40

DoubleDown Interactive has a consensus target price of $18.33, indicating a potential upside of 42.67%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe DoubleDown Interactive is more favorable than Snail.

Summary

DoubleDown Interactive beats Snail on 11 of the 14 factors compared between the two stocks.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.

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.