Financial Contrast: Reddit (NYSE:RDDT) versus QXO (NASDAQ:QXO)

QXO (NASDAQ:QXO) and Reddit (NYSE:RDDT) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares QXO and Reddit”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$56.84 million	112.73	-$1.07 million	($9.12)	-1.72
Reddit	$1.12 billion	26.20	-$90.82 million	N/A	N/A

QXO has higher earnings, but lower revenue than Reddit.

Institutional & Insider Ownership

58.7% of QXO shares are held by institutional investors. 51.3% of QXO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for QXO and Reddit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	0.00
Reddit	1	5	14	1	2.71

Reddit has a consensus price target of $136.75, indicating a potential downside of 18.35%. Given Reddit’s stronger consensus rating and higher probable upside, analysts plainly believe Reddit is more favorable than QXO.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QXO	30.08%	1.58%	1.30%
Reddit	-47.83%	-40.54%	-27.32%

Summary

QXO beats Reddit on 7 of the 12 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

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.