Reddit, Inc. (RDDT)vsRoku Inc (ROKU)
RDDT
Reddit, Inc.
$129.90
-3.79%
COMMUNICATION SERVICES · Cap: $30.04B
ROKU
Roku Inc
$156.33
+0.64%
COMMUNICATION SERVICES · Cap: $23.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Roku Inc generates 87% more annual revenue ($5.21B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 6.8%. ROKU appears more attractively valued with a PEG of 0.60. RDDT earns a higher WallStSmart Score of 77/100 (B+).
RDDT
Strong Buy77
out of 100
Grade: B+
ROKU
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$129.90
$7.88 premium
Intrinsic value data unavailable for ROKU.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 31 of every $100 in revenue as profit
Revenue surging 61.1% year-over-year
Earnings expanding 177.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Earnings expanding 1443.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Revenue surging 21.9% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.2x book value
6.8% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : ROKU
The strongest argument for ROKU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 21.9% demonstrates continued momentum. PEG of 0.60 suggests the stock is reasonably priced for its growth.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : ROKU
The primary concerns for ROKU are Price/Book, Profit Margin, P/E Ratio. A P/E of 66.1x leaves little room for execution misses.
Key Dynamics to Monitor
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.
ROKU generates stronger free cash flow (281M), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RDDT scores higher overall (77/100 vs 63/100), 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.
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.
Roku Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.
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