Gravity (NASDAQ:GRVY – Get Free Report) and DoubleDown Interactive (NASDAQ:DDI – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
9.9% of Gravity shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Gravity has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gravity | 0 | 0 | 0 | 0 | N/A |
| DoubleDown Interactive | 0 | 0 | 4 | 0 | 3.00 |
DoubleDown Interactive has a consensus price target of $20.08, indicating a potential upside of 51.52%. Given DoubleDown Interactive’s higher possible upside, analysts plainly believe DoubleDown Interactive is more favorable than Gravity.
Profitability
This table compares Gravity and DoubleDown Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gravity | 14.87% | 37.85% | 30.67% |
| DoubleDown Interactive | 34.85% | 15.62% | 14.27% |
Earnings & Valuation
This table compares Gravity and DoubleDown Interactive”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gravity | $564.42 billion | 0.00 | $105.61 million | $13.23 | 4.55 |
| DoubleDown Interactive | $332.46 million | 1.98 | $100.89 million | $2.15 | 6.17 |
Gravity has higher revenue and earnings than DoubleDown Interactive. Gravity is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.
Summary
Gravity beats DoubleDown Interactive on 7 of the 12 factors compared between the two stocks.
About Gravity
Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
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.
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