Applovin Corp (APP)vsReddit, Inc. (RDDT)
APP
Applovin Corp
$506.98
-2.58%
COMMUNICATION SERVICES · Cap: $174.83B
RDDT
Reddit, Inc.
$195.34
-2.48%
COMMUNICATION SERVICES · Cap: $38.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Applovin Corp generates 149% more annual revenue ($6.16B vs $2.47B). APP leads profitability with a 64.3% profit margin vs 28.6%. RDDT appears more attractively valued with a PEG of 1.40. APP earns a higher WallStSmart Score of 77/100 (B+).
APP
Strong Buy77
out of 100
Grade: B+
RDDT
Strong Buy75
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 168 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 78.1%
Revenue surging 59.0% year-over-year
Earnings expanding 113.1% YoY
Safe zone — low bankruptcy risk
Revenue surging 69.1% year-over-year
Earnings expanding 675.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 72.1x book value
Trading at 11.8x 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 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.
Bull Case : RDDT
The strongest argument for RDDT centers on Revenue Growth, EPS Growth, Debt/Equity. Profitability is solid with margins at 28.6% and operating margin at 27.6%. Revenue growth of 69.1% demonstrates continued momentum.
Bear Case : APP
The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 45.5x leaves little room for execution misses.
Bear Case : RDDT
The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 55.8x leaves little room for execution misses.
Key Dynamics to Monitor
APP carries more volatility with a beta of 2.48 — expect wider price swings.
RDDT is growing revenue faster at 69.1% — sustainability is the question.
APP generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor ADVERTISING AGENCIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
APP scores higher overall (77/100 vs 75/100), backed by strong 64.3% margins and 59.0% 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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