Comparing Reddit (RDDT) and Its Competitors

Reddit (NYSE:RDDT) is one of 151 public companies in the “Data processing & preparation” industry, but how does it contrast to its rivals? We will compare Reddit to similar companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, risk, dividends and earnings.

Profitability

This table compares Reddit and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reddit	-37.25%	-24.71%	-22.52%
Reddit Competitors	-158.77%	-1,791.07%	-8.24%

Analyst Recommendations

This is a summary of current ratings and target prices for Reddit and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	9	11	1	2.55
Reddit Competitors	878	4653	6221	164	2.48

Reddit presently has a consensus target price of $173.45, indicating a potential upside of 35.81%. As a group, “Data processing & preparation” companies have a potential upside of 22.08%. Given Reddit’s stronger consensus rating and higher probable upside, equities analysts plainly believe Reddit is more favorable than its rivals.

Earnings and Valuation

This table compares Reddit and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-16.52
Reddit Competitors	$5.51 billion	$11.45 million	-11.23

Reddit’s rivals have higher revenue and earnings than Reddit. Reddit is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

46.1% of shares of all “Data processing & preparation” companies are owned by institutional investors. 20.2% of shares of all “Data processing & preparation” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Reddit rivals beat Reddit on 7 of the 12 factors compared.

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.