Head to Head Analysis: Reddit (RDDT) and 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 rivals? We will compare Reddit to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, earnings and valuation.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-21.51
Reddit Competitors	$955.81 million	$7.99 million	-12.98

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

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	-158.80%	-1,792.40%	-8.82%

Institutional & Insider Ownership

46.1% of shares of all “Data processing & preparation” companies are owned by institutional investors. 20.2% of shares of all “Data processing & preparation” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations 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	1	8	12	1	2.59
Reddit Competitors	869	4593	6171	158	2.48

Reddit presently has a consensus target price of $175.95, suggesting a potential upside of 5.82%. As a group, “Data processing & preparation” companies have a potential upside of 12.97%. Given Reddit’s rivals higher possible upside, analysts clearly believe Reddit has less favorable growth aspects than its rivals.

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.