Head to Head Contrast: Reddit (RDDT) versus The Competition

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

Profitability

This table compares Reddit and its competitors’ 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%

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Reddit	$1.30 billion	-$484.28 million	-16.26
Reddit Competitors	$5.51 billion	$11.45 million	-11.61

Reddit’s competitors have higher revenue and earnings than Reddit. Reddit is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Reddit and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	2	9	11	1	2.48
Reddit Competitors	879	4654	6228	165	2.48

Reddit currently has a consensus target price of $168.76, suggesting a potential upside of 34.28%. As a group, “Data processing & preparation” companies have a potential upside of 20.21%. Given Reddit’s stronger consensus rating and higher possible upside, analysts clearly believe Reddit is more favorable than its competitors.

Summary

Reddit competitors 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.