Toast (NYSE:TOST) versus DoubleDown Interactive (NASDAQ:DDI) Head-To-Head Contrast

DoubleDown Interactive (NASDAQ:DDI) and Toast (NYSE:TOST) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares DoubleDown Interactive and Toast”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	$341.33 million	1.46	$124.02 million	$2.51	4.02
Toast	$4.96 billion	3.57	-$246.00 million	($0.01)	-3,763.40

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

Risk and Volatility

DoubleDown Interactive has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Toast has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Insider & Institutional Ownership

82.9% of Toast shares are owned by institutional investors. 13.3% of Toast shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleDown Interactive	36.37%	15.52%	14.31%
Toast	0.40%	1.54%	0.93%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DoubleDown Interactive and Toast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleDown Interactive	0	0	3	1	3.25
Toast	1	12	10	0	2.39

DoubleDown Interactive presently has a consensus target price of $20.67, suggesting a potential upside of 104.82%. Toast has a consensus target price of $40.09, suggesting a potential upside of 6.53%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, equities analysts plainly believe DoubleDown Interactive is more favorable than Toast.

Summary

DoubleDown Interactive beats Toast on 9 of the 15 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 Toast

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast. It provides toast online ordering and toast takeout, first-party delivery toast delivery services, and third-party delivery integrations and orders hub; and loyalty, email marketing, and toast gift cards. In addition, the company offers payroll and team management, Sling by Toast, Toast pay card and payout, and tips manager, as well as partner-enabled products comprising insurance and benefits; supply chain and accounting products, such as xtraCHEF by toast; and financial technology solutions consisting of payment processing, toast capital, and purchase plans. Further, it offers reporting and analytics, Toast shop, and Toast partner connect and application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.