Analyzing Data Storage (NASDAQ:DTST) & DoubleDown Interactive (NASDAQ:DDI)

Data Storage (NASDAQ:DTST) and DoubleDown Interactive (NASDAQ:DDI) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data Storage	0.86%	1.08%	0.89%
DoubleDown Interactive	34.85%	15.62%	14.27%

Volatility & Risk

Data Storage has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

11.6% of Data Storage shares are held by institutional investors. 42.2% of Data Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Data Storage and DoubleDown Interactive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data Storage	$24.96 million	1.36	$380,000.00	$0.02	242.00
DoubleDown Interactive	$308.86 million	2.73	$100.89 million	$2.33	7.30

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

Analyst Ratings

This is a summary of recent ratings and target prices for Data Storage and DoubleDown Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data Storage	0	0	0	0	0.00
DoubleDown Interactive	0	0	4	0	3.00

DoubleDown Interactive has a consensus price target of $20.08, indicating a potential upside of 18.14%. Given DoubleDown Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe DoubleDown Interactive is more favorable than Data Storage.

Summary

DoubleDown Interactive beats Data Storage on 11 of the 14 factors compared between the two stocks.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.

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.