Reddit (RDDT) versus Its Peers Head to Head Analysis

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	9	11	1	2.55
Reddit Competitors	872	4620	6191	160	2.48

Reddit currently has a consensus target price of $175.95, indicating a potential upside of 4.70%. As a group, “Data processing & preparation” companies have a potential upside of 13.66%. Given Reddit’s rivals higher probable upside, analysts clearly believe Reddit has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Reddit and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-21.74
Reddit Competitors	$5.28 billion	$11.45 million	-13.85

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.

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%

Insider and Institutional Ownership

46.1% of shares of all “Data processing & preparation” companies are owned by institutional investors. 20.2% of shares of all “Data processing & preparation” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Reddit rivals 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.