MGM Resorts International (NYSE:MGM) & DoubleDown Interactive (NASDAQ:DDI) Head to Head Analysis

DoubleDown Interactive (NASDAQ:DDI) and MGM Resorts International (NYSE:MGM) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares DoubleDown Interactive and MGM Resorts International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleDown Interactive	$359.94 million	N/A	$102.50 million	$2.07	4.26
MGM Resorts International	$17.54 billion	0.54	$205.86 million	$0.75	49.12

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

Analyst Recommendations

This is a summary of current recommendations and price targets for DoubleDown Interactive and MGM Resorts International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	2	3	0	2.60
MGM Resorts International	4	7	8	1	2.30

DoubleDown Interactive presently has a consensus price target of $18.75, indicating a potential upside of 112.59%. MGM Resorts International has a consensus price target of $41.94, indicating a potential upside of 13.84%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, research analysts plainly believe DoubleDown Interactive is more favorable than MGM Resorts International.

Risk and Volatility

DoubleDown Interactive has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, MGM Resorts International has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

68.1% of MGM Resorts International shares are held by institutional investors. 3.1% of MGM Resorts International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares DoubleDown Interactive and MGM Resorts International’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%
MGM Resorts International	1.17%	26.04%	2.19%

Summary

MGM Resorts International beats DoubleDown Interactive on 9 of the 14 factors compared between the two stocks.

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.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.