Head-To-Head Comparison: Reddit (RDDT) vs. Its Peers

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

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%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-14.06
Reddit Competitors	$5.51 billion	$11.45 million	-12.48

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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Reddit and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	2	9	11	1	2.48
Reddit Competitors	882	4663	6232	165	2.48

Reddit currently has a consensus target price of $162.68, suggesting a potential upside of 49.70%. As a group, “Data processing & preparation” companies have a potential upside of 22.28%. Given Reddit’s stronger consensus rating and higher probable upside, analysts plainly believe Reddit is more favorable than its rivals.

Institutional and 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 insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Reddit rivals beat Reddit on 7 of the 12 factors compared.

Reddit Company Profile

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.