MSP Recovery (NASDAQ:LIFW) & DoubleDown Interactive (NASDAQ:DDI) Critical Analysis

DoubleDown Interactive (NASDAQ:DDIGet Free Report) and MSP Recovery (NASDAQ:LIFWGet Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

3.8% of MSP Recovery shares are held by institutional investors. 86.5% of MSP Recovery shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares DoubleDown Interactive and MSP Recovery”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DoubleDown Interactive $308.86 million 1.81 $100.89 million $2.30 4.90
MSP Recovery $10.73 million 1.09 -$56.35 million ($142.50) -0.01

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

Analyst Ratings

This is a breakdown of recent recommendations for DoubleDown Interactive and MSP Recovery, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DoubleDown Interactive 0 0 4 0 3.00
MSP Recovery 0 0 0 0 0.00

DoubleDown Interactive currently has a consensus target price of $22.67, indicating a potential upside of 101.30%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DoubleDown Interactive is more favorable than MSP Recovery.

Profitability

This table compares DoubleDown Interactive and MSP Recovery’s 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%
MSP Recovery -906.67% -6.25% -2.39%

Volatility and Risk

DoubleDown Interactive has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.38, indicating that its share price is 338% less volatile than the S&P 500.

Summary

DoubleDown Interactive beats MSP Recovery on 12 of the 14 factors compared between the two stocks.

About DoubleDown Interactive

(Get Free Report)

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 MSP Recovery

(Get Free Report)

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.

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