Yext (NYSE:YEXT – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Institutional & Insider Ownership
71.0% of Yext shares are held by institutional investors. 8.4% of Yext shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Yext and Reddit, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yext | 0 | 2 | 2 | 0 | 2.50 |
| 1 | 9 | 11 | 1 | 2.55 |
Valuation & Earnings
This table compares Yext and Reddit”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yext | $408.97 million | 1.97 | -$2.63 million | ($0.15) | -42.10 |
| $1.30 billion | 21.00 | -$484.28 million | ($7.73) | -19.52 |
Yext has higher earnings, but lower revenue than Reddit. Yext is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Yext and Reddit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yext | -4.64% | -11.10% | -3.49% |
| -37.25% | -24.71% | -22.52% |
Summary
Yext beats Reddit on 8 of the 14 factors compared between the two stocks.
About Yext
Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.
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.
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