Simplicity Esports and Gaming (OTCMKTS:WINR) & DoubleDown Interactive (NASDAQ:DDI) Critical Contrast

Simplicity Esports and Gaming (OTCMKTS:WINR) and DoubleDown Interactive (NASDAQ:DDI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Simplicity Esports and Gaming and DoubleDown Interactive”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	($0.04)	N/A
DoubleDown Interactive	$359.94 million	N/A	$102.50 million	$2.07	4.23

DoubleDown Interactive has higher revenue and earnings than Simplicity Esports and Gaming. Simplicity Esports and Gaming is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Simplicity Esports and Gaming and DoubleDown Interactive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
DoubleDown Interactive	0	2	3	0	2.60

DoubleDown Interactive has a consensus target price of $18.75, indicating a potential upside of 114.29%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than Simplicity Esports and Gaming.

Volatility and Risk

Simplicity Esports and Gaming has a beta of -1.04, suggesting that its share price is 204% less volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
DoubleDown Interactive	28.48%	11.27%	10.32%

Summary

DoubleDown Interactive beats Simplicity Esports and Gaming on 9 of the 9 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

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.