Cheer (NASDAQ:CHR) versus Reddit (NYSE:RDDT) Critical Analysis

Reddit (NYSE:RDDT) and Cheer (NASDAQ:CHR) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Reddit and Cheer, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	5	13	1	2.70
Cheer	0	0	0	0	0.00

Reddit currently has a consensus target price of $124.42, indicating a potential downside of 25.00%. Given Reddit’s stronger consensus rating and higher possible upside, analysts clearly believe Reddit is more favorable than Cheer.

Valuation and Earnings

This table compares Reddit and Cheer”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$804.03 million	36.23	-$90.82 million	N/A	N/A
Cheer	$152.33 million	0.20	$30.48 million	N/A	N/A

Cheer has lower revenue, but higher earnings than Reddit.

Insider & Institutional Ownership

18.5% of Cheer shares are owned by institutional investors. 41.7% of Cheer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Reddit and Cheer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reddit	-47.83%	-40.54%	-27.32%
Cheer	N/A	N/A	N/A

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.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.