Head-To-Head Review: 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 competitors? We will compare Reddit to similar businesses based on the strength of its earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-14.23
Reddit Competitors	$5.51 billion	$11.45 million	-10.29

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.

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%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Reddit and its competitors, 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	4661	6228	165	2.48

Reddit currently has a consensus target price of $164.50, indicating a potential upside of 49.53%. As a group, “Data processing & preparation” companies have a potential upside of 21.05%. Given Reddit’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Reddit is more favorable than its competitors.

Institutional & 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 company 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.

Summary

Reddit competitors beat Reddit on 7 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.