Reddit, Inc. (RDDT)vsZedge Inc (ZDGE)
RDDT
Reddit, Inc.
$91.67
-29.22%
COMMUNICATION SERVICES · Cap: $30.04B
ZDGE
Zedge Inc
$2.34
-6.40%
COMMUNICATION SERVICES · Cap: $40.15M
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 8687% more annual revenue ($2.78B vs $31.63M). RDDT leads profitability with a 31.4% profit margin vs -0.4%. RDDT earns a higher WallStSmart Score of 77/100 (B+).
RDDT
Strong Buy77
out of 100
Grade: B+
ZDGE
Hold38
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$91.67
$46.11 premium
Intrinsic value data unavailable for ZDGE.
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
Earnings expanding 600.0% YoY
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
4.0% revenue growth
Smaller company, higher risk/reward
Operating margin of 3.3%
ROE of -7.2% — 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 : ZDGE
The strongest argument for ZDGE centers on Price/Book, EPS Growth, Debt/Equity.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : ZDGE
The primary concerns for ZDGE are Revenue Growth, Market Cap, Operating Margin.
Key Dynamics to Monitor
RDDT profiles as a growth stock while ZDGE 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 38/100), 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.
Zedge Inc
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Zedge, Inc. operates a global digital publishing and content platform. The company is headquartered in New York, New York.
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