Comparing 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 competitors? We will compare Reddit to similar companies based on the strength of its valuation, risk, earnings, analyst recommendations, profitability, dividends and institutional ownership.

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%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-21.51
Reddit Competitors	$5.06 billion	$7.99 million	-12.47

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.

Insider & 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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations 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	872	4604	6172	158	2.48

Reddit presently has a consensus price target of $175.95, suggesting a potential upside of 5.82%. As a group, “Data processing & preparation” companies have a potential upside of 12.95%. Given Reddit’s competitors higher probable upside, analysts plainly believe Reddit has less favorable growth aspects than its competitors.

Summary

Reddit competitors 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.