Critical Review: Veritone (NASDAQ:VERI) & Reddit (NYSE:RDDT)

Veritone (NASDAQ:VERIGet Free Report) and Reddit (NYSE:RDDTGet Free Report) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Veritone and Reddit, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritone 0 2 0 0 2.00
Reddit 1 6 8 1 2.56

Veritone presently has a consensus target price of $2.25, indicating a potential downside of 28.57%. Given Veritone’s higher probable upside, equities research analysts plainly believe Veritone is more favorable than Reddit.

Valuation & Earnings

This table compares Veritone and Reddit’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veritone $127.56 million 0.93 -$58.62 million ($2.20) -1.43
Reddit $804.03 million 14.11 -$90.82 million N/A N/A

Veritone has higher earnings, but lower revenue than Reddit.

Insider and Institutional Ownership

39.2% of Veritone shares are owned by institutional investors. 26.6% of Veritone shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Veritone and Reddit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veritone -44.39% -154.87% -11.82%
Reddit N/A N/A N/A

Summary

Reddit beats Veritone on 8 of the 12 factors compared between the two stocks.

About Veritone

(Get Free Report)

Veritone, Inc., together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.

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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