Head-To-Head Analysis: Reddit (RDDT) versus Its Rivals

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 related businesses based on the strength of its institutional ownership, profitability, dividends, earnings, valuation, risk and analyst recommendations.

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	-159.17%	-1,792.47%	-8.87%

Analyst Ratings

This is a summary of current ratings and recommmendations for Reddit and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	8	12	1	2.59
Reddit Competitors	869	4581	6141	156	2.48

Reddit presently has a consensus target price of $175.45, indicating a potential downside of 6.35%. As a group, “Data processing & preparation” companies have a potential upside of 5.40%. Given Reddit’s peers higher possible upside, analysts plainly believe Reddit has less favorable growth aspects than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-24.24
Reddit Competitors	$938.77 million	$7.64 million	26.49

Reddit has higher revenue, but lower earnings than its peers. 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.

Insider & Institutional Ownership

45.4% of shares of all “Data processing & preparation” companies are owned by institutional investors. 20.4% of shares of all “Data processing & preparation” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Reddit beats its peers on 6 of the 11 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.