Contrasting Reddit (RDDT) & The Competition

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

Valuation and Earnings

This table compares Reddit and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-13.70
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.

Insider and Institutional Ownership

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

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 Ratings

This is a breakdown of recent ratings and recommmendations 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	4649	6210	163	2.48

Reddit presently has a consensus price target of $175.95, indicating a potential upside of 66.09%. As a group, “Data processing & preparation” companies have a potential upside of 21.39%. Given Reddit’s stronger consensus rating and higher probable upside, analysts clearly believe Reddit is more favorable than its rivals.

Summary

Reddit rivals beat Reddit on 7 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.