Reddit, Inc. (RDDT)vsZiff Davis Inc (ZD)
RDDT
Reddit, Inc.
$134.67
-1.29%
COMMUNICATION SERVICES · Cap: $30.04B
ZD
Ziff Davis Inc
$55.37
-2.91%
COMMUNICATION SERVICES · Cap: $1.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 93% more annual revenue ($2.78B vs $1.44B). ZD leads profitability with a 44.8% 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 Buy77
out of 100
Grade: B+
ZD
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$134.66
$3.12 premium
Margin of Safety
+76.6%
Fair Value
$134.54
Current Price
$55.37
$79.17 discount
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
Reasonable price relative to book value
Keeps 45 of every $100 in revenue as profit
Earnings expanding 2632.0% YoY
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 2.6% — below average capital efficiency
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 : ZD
The strongest argument for ZD centers on Price/Book, Profit Margin, EPS Growth. Profitability is solid with margins at 44.8% and operating margin at 4.2%.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : ZD
The primary concerns for ZD are PEG Ratio, Altman Z-Score, Market Cap.
Key Dynamics to Monitor
RDDT profiles as a growth stock while ZD is a declining 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 61/100), backed by strong 31.4% margins and 61.1% revenue growth. ZD offers better value entry with a 76.6% 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.
Ziff Davis Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
J2 Global, Inc. provides Internet services worldwide. The company is headquartered in Los Angeles, California.
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