Applovin Corp (APP)vsReddit, Inc. (RDDT)
APP
Applovin Corp
$312.63
+1.47%
COMMUNICATION SERVICES · Cap: $104.81B
RDDT
Reddit, Inc.
$153.95
-0.91%
COMMUNICATION SERVICES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Applovin Corp generates 146% more annual revenue ($6.83B vs $2.78B). APP leads profitability with a 64.6% profit margin vs 31.4%. APP appears more attractively valued with a PEG of 0.87. APP earns a higher WallStSmart Score of 79/100 (B+).
APP
Strong Buy79
out of 100
Grade: B+
RDDT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.8%
Fair Value
$268.72
Current Price
$312.63
$43.91 premium
Intrinsic value data unavailable for RDDT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 139 in profit
Keeps 65 of every $100 in revenue as profit
Strong operational efficiency at 77.7%
Revenue surging 52.8% year-over-year
Earnings expanding 57.0% YoY
Safe zone — low bankruptcy risk
Keeps 31 of every $100 in revenue as profit
Revenue surging 61.1% year-over-year
Earnings expanding 177.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Areas to Watch
Elevated debt levels
Trading at 33.2x book value
Trading at 9.0x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : APP
The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.6% and operating margin at 77.7%. Revenue growth of 52.8% demonstrates continued momentum.
Bull Case : RDDT
The strongest argument for RDDT centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 31.4% and operating margin at 28.8%. Revenue growth of 61.1% demonstrates continued momentum.
Bear Case : APP
The primary concerns for APP are Debt/Equity, Price/Book.
Bear Case : RDDT
The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Key Dynamics to Monitor
APP carries more volatility with a beta of 2.53 — expect wider price swings.
RDDT is growing revenue faster at 61.1% — sustainability is the question.
APP generates stronger free cash flow (869M), providing more financial flexibility.
Monitor ADVERTISING AGENCIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
APP scores higher overall (79/100 vs 75/100), backed by strong 64.6% margins and 52.8% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Applovin Corp
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.
Visit Website →Reddit, Inc.
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.
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