Reddit (NYSE:RDDT) and Innodata (NASDAQ:INOD) Critical Review

Reddit (NYSE:RDDTGet Free Report) and Innodata (NASDAQ:INODGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Reddit and Innodata”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reddit $981.41 million 10.99 -$90.82 million N/A N/A
Innodata $107.34 million 4.03 -$910,000.00 $0.06 251.00

Innodata has lower revenue, but higher earnings than Reddit.

Analyst Ratings

This is a breakdown of current ratings and price targets for Reddit and Innodata, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reddit 1 6 9 2 2.67
Innodata 0 0 3 0 3.00

Reddit currently has a consensus target price of $66.12, indicating a potential upside of 0.32%. Innodata has a consensus target price of $27.67, indicating a potential upside of 84.20%. Given Innodata’s stronger consensus rating and higher probable upside, analysts plainly believe Innodata is more favorable than Reddit.

Insider & Institutional Ownership

30.8% of Innodata shares are owned by institutional investors. 15.2% of Innodata shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Reddit and Innodata’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reddit N/A N/A N/A
Innodata 2.79% 11.41% 4.89%

Summary

Innodata beats Reddit on 8 of the 12 factors compared between the two stocks.

About Reddit

(Get Free Report)

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 Innodata

(Get Free Report)

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

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