WallStSmart

Reddit, Inc. (RDDT)vsTake-Two Interactive Software Inc (TTWO)

VS

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 1.15. RDDT earns a higher WallStSmart Score of 75/100 (B+).

RDDT

Strong Buy

75

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 9.0
Piotroski: 4/9Altman Z: 7.66

TTWO

Avoid

27

out of 100

Grade: F

Growth: 4.0Profit: 2.5Value: 4.0Quality: 5.0
Piotroski: 6/9Altman Z: 0.04

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

TTWO0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

RDDT2 concerns · Avg: 3.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

TTWO4 concerns · Avg: 3.3/10
Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Operating MarginProfitability
0.5%3/10

Operating margin of 0.5%

PEG RatioValuation
3.192/10

Expensive relative to growth rate

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 : TTWO

TTWO has a balanced fundamental profile.

Bear Case : RDDT

The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.

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 2.03 — 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 (75/100 vs 27/100), 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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