Digerati Technologies (OTCMKTS:DTGI) and DoubleDown Interactive (NASDAQ:DDI) Financial Comparison

DoubleDown Interactive (NASDAQ:DDI) and Digerati Technologies (OTCMKTS:DTGI) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Earnings & Valuation

This table compares DoubleDown Interactive and Digerati Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleDown Interactive	$342.46 million	1.48	$100.89 million	$2.30	4.45
Digerati Technologies	$31.62 million	0.05	-$8.29 million	($0.08)	-0.11

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

Volatility & Risk

DoubleDown Interactive has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Digerati Technologies has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500.

Profitability

This table compares DoubleDown Interactive and Digerati Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	33.28%	14.78%	13.54%
Digerati Technologies	-44.32%	N/A	-35.63%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for DoubleDown Interactive and Digerati Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	0	4	0	3.00
Digerati Technologies	0	0	0	0	0.00

DoubleDown Interactive currently has a consensus price target of $22.67, indicating a potential upside of 121.57%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, equities analysts plainly believe DoubleDown Interactive is more favorable than Digerati Technologies.

Summary

DoubleDown Interactive beats Digerati Technologies on 12 of the 12 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 Digerati Technologies

Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.