Reddit (RDDT) versus Its Rivals Financial Review

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

Valuation and Earnings

This table compares Reddit and its peers top-line revenue, earnings per share (EPS) 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 peers have higher revenue and earnings than Reddit. Reddit is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Reddit and its peers’ 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%

Institutional and 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 company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Reddit and its peers, 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	4661	6228	165	2.48

Reddit presently 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, research analysts plainly believe Reddit is more favorable than its peers.

Summary

Reddit peers 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.