Life360 (NASDAQ:LIF – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Profitability
This table compares Life360 and Reddit’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Life360 | -4.72% | -4.03% | -3.16% |
-47.83% | -40.54% | -27.32% |
Insider and Institutional Ownership
20.0% of Life360 shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Life360 | $304.52 million | 11.70 | -$28.17 million | N/A | N/A |
$804.03 million | 43.51 | -$90.82 million | N/A | N/A |
Life360 has higher earnings, but lower revenue than Reddit.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Life360 and Reddit, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Life360 | 0 | 0 | 7 | 1 | 3.13 |
1 | 7 | 12 | 1 | 2.62 |
Life360 presently has a consensus target price of $47.63, indicating a potential downside of 0.16%. Reddit has a consensus target price of $159.70, indicating a potential downside of 19.84%. Given Life360’s stronger consensus rating and higher possible upside, research analysts plainly believe Life360 is more favorable than Reddit.
Summary
Life360 beats Reddit on 7 of the 10 factors compared between the two stocks.
About Life360
Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.
About Reddit
Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
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