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

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

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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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 & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-14.18
Reddit Competitors	$5.51 billion	$11.45 million	-11.92

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 Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	2	9	11	1	2.48
Reddit Competitors	882	4662	6230	165	2.48

Reddit presently has a consensus target price of $164.50, suggesting a potential upside of 50.07%. As a group, “Data processing & preparation” companies have a potential upside of 20.74%. Given Reddit’s stronger consensus rating and higher possible upside, equities analysts clearly believe Reddit is more favorable than its rivals.

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.