NEXON (OTCMKTS:NEXOY) and DoubleDown Interactive (NASDAQ:DDI) Critical Survey

NEXON (OTCMKTS:NEXOY) and DoubleDown Interactive (NASDAQ:DDI) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEXON	26.37%	12.45%	9.72%
DoubleDown Interactive	32.91%	12.93%	11.81%

Analyst Recommendations

This is a breakdown of recent ratings for NEXON and DoubleDown Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
DoubleDown Interactive	0	3	2	0	2.40

DoubleDown Interactive has a consensus target price of $18.33, indicating a potential upside of 43.29%. Given DoubleDown Interactive’s higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than NEXON.

Earnings and Valuation

This table compares NEXON and DoubleDown Interactive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXON	$3.18 billion	5.05	$616.75 million	C$1.11	18.22
DoubleDown Interactive	$359.94 million	1.76	$102.50 million	$2.52	5.08

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

About NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.

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.