WallStSmart

Doubledown Interactive Co Ltd (DDI)vsElectronic Arts Inc (EA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Electronic Arts Inc generates 1992% more annual revenue ($7.53B vs $359.94M). DDI leads profitability with a 28.5% profit margin vs 11.8%. DDI trades at a lower P/E of 5.6x. EA earns a higher WallStSmart Score of 63/100 (C+).

DDI

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 8.5Value: 7.7Quality: 5.0

EA

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$11.56

Current Price

$11.60

$0.04 discount

UndervaluedFair: $11.56Overvalued
EASignificantly Overvalued (-78.6%)

Margin of Safety

-78.6%

Fair Value

$113.25

Current Price

$200.44

$87.19 premium

UndervaluedFair: $113.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI5 strengths · Avg: 9.4/10
P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.6%10/10

Strong operational efficiency at 39.6%

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

EA3 strengths · Avg: 9.0/10
EPS GrowthGrowth
86.0%10/10

Earnings expanding 86.0% YoY

Market CapQuality
$50.26B9/10

Large-cap with strong market position

Operating MarginProfitability
24.0%8/10

Strong operational efficiency at 24.0%

Areas to Watch

DDI2 concerns · Avg: 2.5/10
Market CapQuality
$574.82M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-32.5%2/10

Earnings declined 32.5%

EA3 concerns · Avg: 3.3/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Price/BookValuation
8.2x4/10

Trading at 8.2x book value

P/E RatioValuation
57.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DDI

The strongest argument for DDI centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 39.6%. Revenue growth of 16.9% demonstrates continued momentum.

Bull Case : EA

The strongest argument for EA centers on EPS Growth, Market Cap, Operating Margin. Revenue growth of 11.9% demonstrates continued momentum.

Bear Case : DDI

The primary concerns for DDI are Market Cap, EPS Growth.

Bear Case : EA

The primary concerns for EA are PEG Ratio, Price/Book, P/E Ratio. A P/E of 57.1x leaves little room for execution misses.

Key Dynamics to Monitor

DDI profiles as a growth stock while EA is a value play — different risk/reward profiles.

DDI carries more volatility with a beta of 1.01 — expect wider price swings.

DDI is growing revenue faster at 16.9% — sustainability is the question.

EA generates stronger free cash flow (519M), providing more financial flexibility.

Bottom Line

EA scores higher overall (63/100 vs 60/100) and 11.9% revenue growth. DDI offers better value entry with a 26.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Doubledown Interactive Co Ltd

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

DoubleDown Interactive Co., Ltd. is engaged in the development and publication of digital games on mobile and web-based platforms for casual gamers in South Korea. The company is headquartered in Seoul, South Korea.

Electronic Arts Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.

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