Financial Comparison: Reddit (RDDT) & The Competition

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-21.01
Reddit Competitors	$5.51 billion	$11.45 million	-10.42

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Reddit and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	9	11	1	2.55
Reddit Competitors	875	4637	6200	161	2.48

Reddit presently has a consensus price target of $175.95, suggesting a potential upside of 8.36%. As a group, “Data processing & preparation” companies have a potential upside of 16.31%. Given Reddit’s peers higher probable upside, analysts clearly believe Reddit has less favorable growth aspects than its peers.

Institutional & Insider 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Reddit and its peers’ 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%

Summary

Reddit peers beat Reddit on 8 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.