WallStSmart

Alphabet Inc Class C (GOOG)vsReddit, Inc. (RDDT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 16981% more annual revenue ($422.50B vs $2.47B). GOOG leads profitability with a 37.9% profit margin vs 28.6%. RDDT appears more attractively valued with a PEG of 1.30. RDDT earns a higher WallStSmart Score of 75/100 (B+).

GOOG

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.3Quality: 8.0
Piotroski: 4/9Altman Z: 3.91

RDDT

Strong Buy

75

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 4.3Quality: 9.0
Piotroski: 4/9Altman Z: 7.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGFair Value (-1.4%)

Margin of Safety

-1.4%

Fair Value

$366.11

Current Price

$365.76

$0.35 premium

UndervaluedFair: $366.11Overvalued

Intrinsic value data unavailable for RDDT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.48T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.5%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

EPS GrowthGrowth
82.0%10/10

Earnings expanding 82.0% YoY

Free Cash FlowQuality
$10.12B10/10

Generating 10.1B in free cash flow

RDDT6 strengths · Avg: 9.7/10
Revenue GrowthGrowth
69.1%10/10

Revenue surging 69.1% year-over-year

EPS GrowthGrowth
675.0%10/10

Earnings expanding 675.0% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.5710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
28.6%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

GOOG2 concerns · Avg: 4.0/10
P/E RatioValuation
28.0x4/10

Moderate valuation

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

RDDT2 concerns · Avg: 3.0/10
Price/BookValuation
10.5x4/10

Trading at 10.5x book value

P/E RatioValuation
52.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% 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 : GOOG

The primary concerns for GOOG are P/E Ratio, Price/Book.

Bear Case : RDDT

The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 52.1x leaves little room for execution misses.

Key Dynamics to Monitor

RDDT carries more volatility with a beta of 1.91 — expect wider price swings.

RDDT is growing revenue faster at 69.1% — sustainability is the question.

GOOG generates stronger free cash flow (10.1B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GOOG scores higher overall (75/100 vs 75/100), backed by strong 37.9% margins and 21.8% 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.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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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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