DoubleDown Interactive (NASDAQ:DDI) vs. E2open Parent (NYSE:ETWO) Head-To-Head Review

E2open Parent (NYSE:ETWO) and DoubleDown Interactive (NASDAQ:DDI) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares E2open Parent and DoubleDown Interactive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E2open Parent	$613.46 million	1.45	-$1.07 billion	($1.49)	-1.74
DoubleDown Interactive	$342.46 million	1.56	$100.89 million	$2.30	4.68

DoubleDown Interactive has lower revenue, but higher earnings than E2open Parent. E2open Parent is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares E2open Parent and DoubleDown Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E2open Parent	-125.70%	3.92%	2.00%
DoubleDown Interactive	33.28%	14.78%	13.54%

Analyst Ratings

This is a summary of current ratings and price targets for E2open Parent and DoubleDown Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E2open Parent	1	3	0	0	1.75
DoubleDown Interactive	0	0	4	0	3.00

E2open Parent presently has a consensus target price of $3.28, suggesting a potential upside of 25.96%. DoubleDown Interactive has a consensus target price of $22.67, suggesting a potential upside of 110.66%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than E2open Parent.

Risk & Volatility

E2open Parent has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, DoubleDown Interactive has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

DoubleDown Interactive beats E2open Parent on 10 of the 12 factors compared between the two stocks.

About E2open Parent

E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its SaaS platform includes various key strategic and operational areas, including omni-channel, demand sensing, supply planning, global trade management, transportation and logistics and manufacturing and supply management. The company's software combines networks, data, and applications to provide a deeply embedded and mission-critical platform that allows its clients to optimize their channel and supply chains. It serves consumer goods, food and beverage, manufacturing, retail, industrial and automotive, aerospace and defense, technology and transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.

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.