WallStSmart

Lumen Technologies, Inc. (LUMN)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lumen Technologies, Inc. generates 326% more annual revenue ($11.83B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs -8.7%. RDDT appears more attractively valued with a PEG of 0.76. RDDT earns a higher WallStSmart Score of 77/100 (B+).

LUMN

Avoid

30

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -0.46

RDDT

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.3Quality: 9.0
Piotroski: 4/9Altman Z: 7.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LUMNUndervalued (+29.1%)

Margin of Safety

+29.1%

Fair Value

$11.08

Current Price

$4.80

$6.28 discount

UndervaluedFair: $11.08Overvalued
RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$129.90

$7.88 premium

UndervaluedFair: $137.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LUMN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-9.0710/10

Conservative balance sheet, low leverage

RDDT6 strengths · Avg: 9.8/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Revenue GrowthGrowth
61.1%10/10

Revenue surging 61.1% year-over-year

EPS GrowthGrowth
177.8%10/10

Earnings expanding 177.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.6610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.5%9/10

Every $100 of equity generates 27 in profit

Areas to Watch

LUMN4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
54.582/10

Expensive relative to growth rate

Return on EquityProfitability
-14.9%2/10

ROE of -14.9% — below average capital efficiency

Revenue GrowthGrowth
-9.3%2/10

Revenue declined 9.3%

RDDT1 concerns · Avg: 4.0/10
P/E RatioValuation
36.3x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : LUMN

The strongest argument for LUMN centers on Debt/Equity.

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 : LUMN

The primary concerns for LUMN are Piotroski F-Score, PEG Ratio, Return on Equity.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

LUMN profiles as a turnaround stock while RDDT is a growth play — different risk/reward profiles.

RDDT carries more volatility with a beta of 2.05 — expect wider price swings.

RDDT is growing revenue faster at 61.1% — sustainability is the question.

RDDT generates stronger free cash flow (261M), providing more financial flexibility.

Bottom Line

RDDT scores higher overall (77/100 vs 30/100), backed by strong 31.4% margins and 61.1% revenue growth. LUMN offers better value entry with a 29.1% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Lumen Technologies, Inc.

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Lumen Technologies (formerly CenturyLink) is an American telecommunications company headquartered in Monroe, Louisiana, that offers communications, network services, security, cloud solutions, voice, and managed services.

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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