Reviewing Reddit (RDDT) & Its Rivals

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-21.78
Reddit Competitors	$5.51 billion	$11.45 million	-9.53

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

Profitability

This table compares Reddit and its competitors’ 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 Ratings

This is a summary of current ratings and price targets for Reddit and its competitors, 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	875	4641	6204	161	2.48

Reddit presently has a consensus price target of $175.95, suggesting a potential upside of 4.49%. As a group, “Data processing & preparation” companies have a potential upside of 15.72%. Given Reddit’s competitors higher possible upside, analysts plainly believe Reddit has less favorable growth aspects than its competitors.

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 company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Reddit competitors beat Reddit on 8 of the 12 factors compared.

Reddit Company Profile

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.