Magnite Inc (MGNI)vsReddit, Inc. (RDDT)
MGNI
Magnite Inc
$20.34
-4.15%
COMMUNICATION SERVICES · Cap: $2.94B
RDDT
Reddit, Inc.
$195.34
-2.48%
COMMUNICATION SERVICES · Cap: $38.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 242% more annual revenue ($2.47B vs $722.55M). RDDT leads profitability with a 28.6% profit margin vs 22.0%. MGNI appears more attractively valued with a PEG of 0.09. RDDT earns a higher WallStSmart Score of 75/100 (B+).
MGNI
Buy65
out of 100
Grade: C+
RDDT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.1%
Fair Value
$28.14
Current Price
$20.34
$7.80 discount
Intrinsic value data unavailable for RDDT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 230.0% YoY
Keeps 22 of every $100 in revenue as profit
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
Operating margin of 4.7%
Negative free cash flow — burning cash
Distress zone — elevated risk
Trading at 11.8x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : MGNI
The strongest argument for MGNI centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 22.0% and operating margin at 4.7%. PEG of 0.09 suggests the stock is reasonably priced for its growth.
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 : MGNI
The primary concerns for MGNI are Operating Margin, Free Cash Flow, Altman Z-Score.
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
MGNI profiles as a mature stock while RDDT is a growth play — different risk/reward profiles.
MGNI carries more volatility with a beta of 2.25 — expect wider price swings.
RDDT is growing revenue faster at 69.1% — sustainability is the question.
RDDT generates stronger free cash flow (311M), providing more financial flexibility.
Bottom Line
RDDT scores higher overall (75/100 vs 65/100), backed by strong 28.6% margins and 69.1% revenue growth. MGNI offers better value entry with a 58.1% margin of safety. Both earn "Strong Buy" and "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.
Magnite Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.
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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