Reddit, Inc. (RDDT)vsTake-Two Interactive Software Inc (TTWO)
RDDT
Reddit, Inc.
$134.67
-1.29%
COMMUNICATION SERVICES · Cap: $30.04B
TTWO
Take-Two Interactive Software Inc
$195.29
-2.98%
COMMUNICATION SERVICES · Cap: $39.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Take-Two Interactive Software Inc generates 141% more annual revenue ($6.69B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs -4.8%. RDDT appears more attractively valued with a PEG of 0.76. RDDT earns a higher WallStSmart Score of 77/100 (B+).
RDDT
Strong Buy77
out of 100
Grade: B+
TTWO
Avoid29
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$134.66
$3.12 premium
Intrinsic value data unavailable for TTWO.
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
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Trading at 10.1x book value
2.0% revenue growth
Operating margin of 0.5%
Expensive relative to growth rate
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 : TTWO
TTWO has a balanced fundamental profile.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : TTWO
The primary concerns for TTWO are Price/Book, Revenue Growth, Operating Margin.
Key Dynamics to Monitor
RDDT profiles as a growth stock while TTWO is a turnaround 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 29/100), backed by strong 31.4% margins and 61.1% revenue growth. Both earn "Strong Buy" and "Avoid" 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.
Take-Two Interactive Software Inc
COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA
Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.
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