Upwork (NASDAQ:UPWK – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
77.7% of Upwork shares are held by institutional investors. 7.6% of Upwork shares are held 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 Recommendations
This is a summary of current ratings and target prices for Upwork and Reddit, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Upwork | 0 | 2 | 8 | 0 | 2.80 |
1 | 6 | 9 | 1 | 2.59 |
Profitability
This table compares Upwork and Reddit’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Upwork | 10.00% | 20.75% | 7.42% |
N/A | N/A | N/A |
Earnings & Valuation
This table compares Upwork and Reddit’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Upwork | $689.14 million | 1.85 | $46.89 million | $0.35 | 27.54 |
$981.41 million | 10.00 | -$90.82 million | N/A | N/A |
Upwork has higher earnings, but lower revenue than Reddit.
Summary
Upwork beats Reddit on 8 of the 12 factors compared between the two stocks.
About Upwork
Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.
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.
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