Electronic Gaming & Multimedia
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2 / 10Stock Comparison
DDI vs PENN
Revenue, margins, valuation, and 5-year total return — side by side.
Gambling, Resorts & Casinos
DDI vs PENN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Electronic Gaming & Multimedia | Gambling, Resorts & Casinos |
| Market Cap | $551M | $2.24B |
| Revenue (TTM) | $360M | $6.96B |
| Net Income (TTM) | $103M | $-843M |
| Gross Margin | 71.8% | 30.6% |
| Operating Margin | 37.5% | -7.9% |
| Forward P/E | 4.8x | 23.0x |
| Total Debt | $43M | $8.38B |
| Cash & Equiv. | $389M | $687M |
DDI vs PENN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Aug 21 | May 26 | Return |
|---|---|---|---|
| DoubleDown Interact… (DDI) | 100 | 62.6 | -37.4% |
| PENN Entertainment,… (PENN) | 100 | 20.7 | -79.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DDI vs PENN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
DDI carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.49, yield 0.0%
- Rev growth 5.5%, EPS growth -17.2%, 3Y rev CAGR 3.9%
- Lower volatility, beta 0.49, Low D/E 4.5%, current ratio 7.74x
PENN is the clearest fit if your priority is long-term compounding.
- 11.9% 10Y total return vs DDI's -37.4%
- 5.8% revenue growth vs DDI's 5.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 5.8% revenue growth vs DDI's 5.5% | |
| Value | Lower P/E (4.8x vs 23.0x) | |
| Quality / Margins | 28.5% margin vs PENN's -12.1% | |
| Stability / Safety | Beta 0.49 vs PENN's 1.34, lower leverage | |
| Dividends | 0.0% yield; the other pay no meaningful dividend | |
| Momentum (1Y) | +12.6% vs PENN's +6.7% | |
| Efficiency (ROA) | 9.9% ROA vs PENN's -5.7%, ROIC 17.6% vs 1.8% |
DDI vs PENN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
DDI vs PENN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
DDI leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PENN is the larger business by revenue, generating $7.0B annually — 19.3x DDI's $360M. DDI is the more profitable business, keeping 28.5% of every revenue dollar as net income compared to PENN's -12.1%. On growth, DDI holds the edge at +17.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $360M | $7.0B |
| EBITDAEarnings before interest/tax | $142M | -$105M |
| Net IncomeAfter-tax profit | $103M | -$843M |
| Free Cash FlowCash after capex | $136M | -$169M |
| Gross MarginGross profit ÷ Revenue | +71.8% | +30.6% |
| Operating MarginEBIT ÷ Revenue | +37.5% | -7.9% |
| Net MarginNet income ÷ Revenue | +28.5% | -12.1% |
| FCF MarginFCF ÷ Revenue | +37.8% | -2.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.1% | +8.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -32.9% | +37.5% |
Valuation Metrics
DDI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, DDI's 1.4x EV/EBITDA is more attractive than PENN's 13.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $551M | $2.2B |
| Enterprise ValueMkt cap + debt − cash | $205M | $9.9B |
| Trailing P/EPrice ÷ TTM EPS | 5.37x | -2.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.81x | 22.95x |
| PEG RatioP/E ÷ EPS growth rate | 0.47x | — |
| EV / EBITDAEnterprise value multiple | 1.44x | 13.81x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 0.32x |
| Price / BookPrice ÷ Book value/share | 0.58x | 1.33x |
| Price / FCFMarket cap ÷ FCF | 4.03x | — |
Profitability & Efficiency
DDI leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
DDI delivers a 10.8% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $-35 for PENN. DDI carries lower financial leverage with a 0.05x debt-to-equity ratio, signaling a more conservative balance sheet compared to PENN's 4.58x. On the Piotroski fundamental quality scale (0–9), DDI scores 6/9 vs PENN's 5/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +10.8% | -34.7% |
| ROA (TTM)Return on assets | +9.9% | -5.7% |
| ROICReturn on invested capital | +17.6% | +1.8% |
| ROCEReturn on capital employed | +14.6% | +2.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.05x | 4.58x |
| Net DebtTotal debt minus cash | -$346M | $7.7B |
| Cash & Equiv.Liquid assets | $389M | $687M |
| Total DebtShort + long-term debt | $43M | $8.4B |
| Interest CoverageEBIT ÷ Interest expense | 15.96x | -1.02x |
Total Returns (Dividends Reinvested)
DDI leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in DDI five years ago would be worth $6,265 today (with dividends reinvested), compared to $1,936 for PENN. Over the past 12 months, DDI leads with a +12.6% total return vs PENN's +6.7%. The 3-year compound annual growth rate (CAGR) favors DDI at 10.3% vs PENN's -13.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +26.8% | +12.9% |
| 1-Year ReturnPast 12 months | +12.6% | +6.7% |
| 3-Year ReturnCumulative with dividends | +34.1% | -35.3% |
| 5-Year ReturnCumulative with dividends | -37.4% | -80.6% |
| 10-Year ReturnCumulative with dividends | -37.4% | +11.9% |
| CAGR (3Y)Annualised 3-year return | +10.3% | -13.5% |
Risk & Volatility
DDI leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
DDI is the less volatile stock with a 0.49 beta — it tends to amplify market swings less than PENN's 1.34 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DDI currently trades 98.8% from its 52-week high vs PENN's 81.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.49x | 1.34x |
| 52-Week HighHighest price in past year | $11.25 | $20.61 |
| 52-Week LowLowest price in past year | $8.09 | $11.65 |
| % of 52W HighCurrent price vs 52-week peak | +98.8% | +81.4% |
| RSI (14)Momentum oscillator 0–100 | 79.6 | 55.1 |
| Avg Volume (50D)Average daily shares traded | 106K | 4.4M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates DDI as "Buy" and PENN as "Buy". Consensus price targets imply 43.9% upside for DDI (target: $16) vs 18.5% for PENN (target: $20).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $16.00 | $19.88 |
| # AnalystsCovering analysts | 3 | 47 |
| Dividend YieldAnnual dividend ÷ price | +0.0% | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | $0.00 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +15.8% |
DDI leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
DDI vs PENN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DDI or PENN a better buy right now?
For growth investors, PENN Entertainment, Inc.
(PENN) is the stronger pick with 5. 8% revenue growth year-over-year, versus 5. 5% for DoubleDown Interactive Co. , Ltd. (DDI). DoubleDown Interactive Co. , Ltd. (DDI) offers the better valuation at 5. 4x trailing P/E (4. 8x forward), making it the more compelling value choice. Analysts rate DoubleDown Interactive Co. , Ltd. (DDI) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DDI or PENN?
On forward P/E, DoubleDown Interactive Co.
, Ltd. is actually cheaper at 4. 8x.
03Which is the better long-term investment — DDI or PENN?
Over the past 5 years, DoubleDown Interactive Co.
, Ltd. (DDI) delivered a total return of -37. 4%, compared to -80. 6% for PENN Entertainment, Inc. (PENN). Over 10 years, the gap is even starker: PENN returned +11. 9% versus DDI's -37. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DDI or PENN?
By beta (market sensitivity over 5 years), DoubleDown Interactive Co.
, Ltd. (DDI) is the lower-risk stock at 0. 49β versus PENN Entertainment, Inc. 's 1. 34β — meaning PENN is approximately 173% more volatile than DDI relative to the S&P 500. On balance sheet safety, DoubleDown Interactive Co. , Ltd. (DDI) carries a lower debt/equity ratio of 5% versus 5% for PENN Entertainment, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — DDI or PENN?
By revenue growth (latest reported year), PENN Entertainment, Inc.
(PENN) is pulling ahead at 5. 8% versus 5. 5% for DoubleDown Interactive Co. , Ltd. (DDI). On earnings-per-share growth, the picture is similar: DoubleDown Interactive Co. , Ltd. grew EPS -17. 2% year-over-year, compared to -184. 4% for PENN Entertainment, Inc.. Over a 3-year CAGR, DDI leads at 3. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — DDI or PENN?
DoubleDown Interactive Co.
, Ltd. (DDI) is the more profitable company, earning 28. 5% net margin versus -12. 1% for PENN Entertainment, Inc. — meaning it keeps 28. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DDI leads at 37. 5% versus 3. 9% for PENN. At the gross margin level — before operating expenses — DDI leads at 71. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is DDI or PENN more undervalued right now?
On forward earnings alone, DoubleDown Interactive Co.
, Ltd. (DDI) trades at 4. 8x forward P/E versus 23. 0x for PENN Entertainment, Inc. — 18. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DDI: 43. 9% to $16. 00.
08Which pays a better dividend — DDI or PENN?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is DDI or PENN better for a retirement portfolio?
For long-horizon retirement investors, DoubleDown Interactive Co.
, Ltd. (DDI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 49)). Both have compounded well over 10 years (DDI: -37. 4%, PENN: +11. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between DDI and PENN?
These companies operate in different sectors (DDI (Technology) and PENN (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: DDI is a small-cap deep-value stock; PENN is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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