Reddit (NYSE:RDDT – Get Free Report) and QXO (NASDAQ:QXO – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Insider and Institutional Ownership
58.7% of QXO shares are owned by institutional investors. 51.3% of QXO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Reddit and QXO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| -47.83% | -40.54% | -27.32% | |
| QXO | 30.08% | 1.58% | 1.30% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 1 | 5 | 14 | 1 | 2.71 | |
| QXO | 0 | 0 | 0 | 0 | 0.00 |
Reddit presently has a consensus price target of $148.25, suggesting a potential downside of 10.17%. Given Reddit’s stronger consensus rating and higher probable upside, equities analysts plainly believe Reddit is more favorable than QXO.
Earnings and Valuation
This table compares Reddit and QXO”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $1.12 billion | 25.82 | -$90.82 million | N/A | N/A | |
| QXO | $56.84 million | 110.72 | -$1.07 million | ($9.12) | -1.69 |
QXO has lower revenue, but higher earnings than Reddit.
Summary
QXO beats Reddit on 7 of the 12 factors compared between the two stocks.
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.
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.
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