Financial Comparison: Reddit (NYSE:RDDT) & Life360 (NASDAQ:LIF)

Life360 (NASDAQ:LIFGet Free Report) and Reddit (NYSE:RDDTGet 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%
Reddit -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

This table compares Life360 and Reddit”s gross revenue, earnings per share and 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
Reddit $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
Reddit 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

(Get Free Report)

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

(Get Free Report)

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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