WallStSmart

Doubledown Interactive Co Ltd (DDI)vsNetEase Inc (NTES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetEase Inc generates 30582% more annual revenue ($116.60B vs $380.04M). DDI leads profitability with a 32.9% profit margin vs 27.9%. DDI trades at a lower P/E of 5.1x. DDI earns a higher WallStSmart Score of 70/100 (B).

DDI

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.3Quality: 8.5
Piotroski: 3/9Altman Z: 8.44

NTES

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 8.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DDIFair Value (-4.5%)

Margin of Safety

-4.5%

Fair Value

$8.09

Current Price

$12.75

$4.66 premium

UndervaluedFair: $8.09Overvalued
NTESUndervalued (+82.2%)

Margin of Safety

+82.2%

Fair Value

$664.76

Current Price

$122.69

$542.07 discount

UndervaluedFair: $664.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DDI6 strengths · Avg: 10.0/10
P/E RatioValuation
5.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.9%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
38.7%10/10

Strong operational efficiency at 38.7%

EPS GrowthGrowth
50.5%10/10

Earnings expanding 50.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

NTES6 strengths · Avg: 9.3/10
Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

Market CapQuality
$82.06B9/10

Large-cap with strong market position

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Areas to Watch

DDI2 concerns · Avg: 3.0/10
Market CapQuality
$633.29M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

NTES2 concerns · Avg: 3.0/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

EPS GrowthGrowth
-18.7%2/10

Earnings declined 18.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : DDI

The strongest argument for DDI centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 32.9% and operating margin at 38.7%. Revenue growth of 11.2% demonstrates continued momentum.

Bull Case : NTES

The strongest argument for NTES centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 27.9% and operating margin at 40.2%. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bear Case : DDI

The primary concerns for DDI are Market Cap, Piotroski F-Score.

Bear Case : NTES

The primary concerns for NTES are Price/Book, EPS Growth.

Key Dynamics to Monitor

DDI carries more volatility with a beta of 1.02 — expect wider price swings.

DDI is growing revenue faster at 11.2% — sustainability is the question.

NTES generates stronger free cash flow (10.0B), providing more financial flexibility.

Monitor ELECTRONIC GAMING & MULTIMEDIA industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DDI scores higher overall (70/100 vs 67/100), backed by strong 32.9% margins and 11.2% revenue growth. NTES offers better value entry with a 82.2% margin of safety. Both earn "Strong Buy" and "Strong 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.

NetEase Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China

NetEase, Inc. offers online services that focus on gaming, communication, and commerce in the People's Republic of China and internationally. The company is headquartered in Hangzhou, the People's Republic of China.

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