Critical Comparison: DoubleDown Interactive (NASDAQ:DDI) versus Monarch Casino & Resort (NASDAQ:MCRI)

DoubleDown Interactive (NASDAQ:DDIGet Free Report) and Monarch Casino & Resort (NASDAQ:MCRIGet Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

62.4% of Monarch Casino & Resort shares are held by institutional investors. 26.3% of Monarch Casino & Resort shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for DoubleDown Interactive and Monarch Casino & Resort, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DoubleDown Interactive 0 3 3 0 2.50
Monarch Casino & Resort 0 4 2 0 2.33

DoubleDown Interactive presently has a consensus target price of $18.75, indicating a potential upside of 70.61%. Monarch Casino & Resort has a consensus target price of $109.50, indicating a potential downside of 6.90%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than Monarch Casino & Resort.

Volatility & Risk

DoubleDown Interactive has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares DoubleDown Interactive and Monarch Casino & Resort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DoubleDown Interactive 28.48% 11.27% 10.32%
Monarch Casino & Resort 19.62% 19.98% 15.21%

Valuation and Earnings

This table compares DoubleDown Interactive and Monarch Casino & Resort”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 $359.94 million 1.51 $102.50 million $2.07 5.31
Monarch Casino & Resort $545.12 million 3.83 $101.39 million $5.90 19.94

DoubleDown Interactive has higher earnings, but lower revenue than Monarch Casino & Resort. DoubleDown Interactive is trading at a lower price-to-earnings ratio than Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.

Summary

Monarch Casino & Resort beats DoubleDown Interactive on 9 of the 14 factors compared between the two stocks.

About DoubleDown Interactive

(Get Free Report)

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 Monarch Casino & Resort

(Get Free Report)

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.

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