WallStSmart

Reddit, Inc. (RDDT)vsSohu.Com Inc (SOHU)

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Smart Verdict

WallStSmart Research — data-driven comparison

Reddit, Inc. generates 364% more annual revenue ($2.78B vs $599.25M). SOHU leads profitability with a 38.2% profit margin vs 31.4%. RDDT appears more attractively valued with a PEG of 0.76. RDDT earns a higher WallStSmart Score of 77/100 (B+).

RDDT

Strong Buy

77

out of 100

Grade: B+

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

SOHU

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$129.90

$7.88 premium

UndervaluedFair: $137.78Overvalued
SOHUUndervalued (+67.1%)

Margin of Safety

+67.1%

Fair Value

$49.82

Current Price

$12.80

$37.02 discount

UndervaluedFair: $49.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SOHU4 strengths · Avg: 10.0/10
P/E RatioValuation
1.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.2%10/10

Keeps 38 of every $100 in revenue as profit

Altman Z-ScoreHealth
3.3310/10

Safe zone — low bankruptcy risk

Areas to Watch

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

Premium valuation, high expectations priced in

SOHU4 concerns · Avg: 2.0/10
Market CapQuality
$375.22M3/10

Smaller company, higher risk/reward

PEG RatioValuation
21.442/10

Expensive relative to growth rate

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

Operating MarginProfitability
-13.5%1/10

Operating margin of -13.5%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SOHU

The strongest argument for SOHU centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.2% and operating margin at -13.5%.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Bear Case : SOHU

The primary concerns for SOHU are Market Cap, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

RDDT profiles as a growth stock while SOHU is a mature 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.

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

Bottom Line

RDDT scores higher overall (77/100 vs 55/100), backed by strong 31.4% margins and 61.1% revenue growth. SOHU offers better value entry with a 67.1% 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.

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.

Sohu.Com Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · China

Sohu.com Limited provides online media, games and search products and services on PC and mobile devices in China. The company is headquartered in Beijing, China.

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