WallStSmart

Reddit, Inc. (RDDT)vsTrade Desk Inc (TTD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Trade Desk Inc generates 8% more annual revenue ($2.99B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 13.6%. 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

TTD

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.0Quality: 6.5
Piotroski: 4/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$134.66

$3.12 premium

UndervaluedFair: $137.78Overvalued

Intrinsic value data unavailable for TTD.

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

TTD4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.918/10

Growing faster than its price suggests

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

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

Premium valuation, high expectations priced in

TTD3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
-23.6%2/10

Earnings declined 23.6%

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

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 : TTD

The strongest argument for TTD centers on Debt/Equity, PEG Ratio, P/E Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Bear Case : TTD

The primary concerns for TTD are Revenue Growth, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

RDDT profiles as a growth stock while TTD is a value 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 57/100), 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.

Trade Desk Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Trade Desk, Inc. is a technology company in the United States and internationally. The company is headquartered in Ventura, California.

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