WallStSmart

Reddit, Inc. (RDDT)vsUrban One (UONE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Reddit, Inc. generates 685% more annual revenue ($2.78B vs $353.91M). RDDT leads profitability with a 31.4% profit margin vs -19.0%. 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

UONE

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.0Value: 5.3Quality: 4.0
Piotroski: 4/9Altman Z: -2.46
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

Intrinsic value data unavailable for UONE.

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

UONE2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
363.3%10/10

Earnings expanding 363.3% YoY

Areas to Watch

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

Premium valuation, high expectations priced in

UONE4 concerns · Avg: 2.5/10
Market CapQuality
$19.06M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Return on EquityProfitability
-142.5%2/10

ROE of -142.5% — below average capital efficiency

Revenue GrowthGrowth
-6.4%2/10

Revenue declined 6.4%

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 : UONE

The strongest argument for UONE centers on Price/Book, EPS Growth. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Bear Case : UONE

The primary concerns for UONE are Market Cap, Operating Margin, Return on Equity. Debt-to-equity of 28.19 is elevated, increasing financial risk.

Key Dynamics to Monitor

RDDT profiles as a growth stock while UONE 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 47/100), backed by strong 31.4% margins and 61.1% revenue growth. Both earn "Strong Buy" and "Hold" 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.

Urban One

COMMUNICATION SERVICES · BROADCASTING · USA

Urban One, Inc., is an urban-oriented multimedia company in the United States. The company is headquartered in Silver Spring, Maryland.

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