Contrasting MSP Recovery (NASDAQ:LIFW) and DoubleDown Interactive (NASDAQ:DDI)

MSP Recovery (NASDAQ:LIFW) and DoubleDown Interactive (NASDAQ:DDI) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$10.73 million	1.98	-$56.35 million	($142.50)	-0.02
DoubleDown Interactive	$342.46 million	1.53	$100.89 million	$2.30	4.60

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.

Insider & Institutional Ownership

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

Risk and Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-906.67%	-6.25%	-2.39%
DoubleDown Interactive	33.28%	14.78%	13.54%

Analyst Ratings

This is a breakdown of recent ratings and target prices for MSP Recovery and DoubleDown Interactive, as provided by MarketBeat.com.

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

DoubleDown Interactive has a consensus target price of $22.67, suggesting a potential upside of 114.04%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe DoubleDown Interactive is more favorable than MSP Recovery.

Summary

DoubleDown Interactive beats MSP Recovery on 11 of the 14 factors compared between the two stocks.

About MSP Recovery

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.

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.