WallStSmart

News Corp A (NWSA)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

News Corp A generates 225% more annual revenue ($9.03B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 6.3%. RDDT appears more attractively valued with a PEG of 0.76. RDDT earns a higher WallStSmart Score of 77/100 (B+).

NWSA

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 5.0Value: 4.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.79

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

NWSAOvervalued (-10.8%)

Margin of Safety

-10.8%

Fair Value

$20.95

Current Price

$29.31

$8.36 premium

UndervaluedFair: $20.95Overvalued
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

NWSA1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

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

NWSA4 concerns · Avg: 3.5/10
P/E RatioValuation
29.2x4/10

Moderate valuation

Altman Z-ScoreHealth
1.794/10

Distress zone — elevated risk

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

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 : NWSA

The strongest argument for NWSA centers on Price/Book. Revenue growth of 10.8% 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 : NWSA

The primary concerns for NWSA are P/E Ratio, Altman Z-Score, Return on Equity.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

NWSA profiles as a value 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.

NWSA generates stronger free cash flow (539M), providing more financial flexibility.

Bottom Line

RDDT scores higher overall (77/100 vs 55/100), backed by strong 31.4% margins and 61.1% revenue growth. 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.

News Corp A

COMMUNICATION SERVICES · ENTERTAINMENT · USA

News Corporation is an American mass media and publishing company operating across digital real estate information, news media, book publishing, and cable television.

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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