Analyzing Reddit (NYSE:RDDT) and Autohome (NYSE:ATHM)

Autohome (NYSE:ATHM) and Reddit (NYSE:RDDT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

63.1% of Autohome shares are held by institutional investors. 5.7% of Autohome shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Autohome and Reddit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autohome	$7.30 billion	0.43	$286.40 million	$2.01	12.91
Reddit	$1.12 billion	25.82	-$90.82 million	N/A	N/A

Autohome has higher revenue and earnings than Reddit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autohome	24.36%	7.79%	6.07%
Reddit	-47.83%	-40.54%	-27.32%

Analyst Recommendations

This is a summary of current ratings and target prices for Autohome and Reddit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autohome	0	4	0	1	2.40
Reddit	1	5	14	1	2.71

Autohome currently has a consensus target price of $28.00, suggesting a potential upside of 7.94%. Reddit has a consensus target price of $148.25, suggesting a potential downside of 10.17%. Given Autohome’s higher possible upside, equities analysts plainly believe Autohome is more favorable than Reddit.

Summary

Autohome beats Reddit on 8 of the 11 factors compared between the two stocks.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.

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.