Baidu, Inc. (BIDU) vs Reddit Inc. (RDDT)

Baidu, Inc. and Reddit Inc. are both Internet Content & Information companies. Baidu, Inc. is the larger, with a market value of $22.0B against $18.1B — 1.2× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Reddit Inc. trades at 18.2×. Reddit Inc. grew revenue faster over the last twelve months: 62.2% against 2.43%. Reddit Inc. has the higher net margin (32.1% vs −2.58%) and the higher return on invested capital (103.5% vs −2.17%). Across the 17 metrics below, Reddit Inc. leads on 14 and Baidu, Inc. on 3.

Valuation

Metric BIDU RDDT Internet Content & Information median
P/E n/m 18.25 12.38
P/S 1.45 5.88 0.93
P/B 0.69 5.07 1.24
Price to free cash flow n/m 15.17 10.76
EV/EBITDA n/m 16.37 10.74
EV/Sales 0.78 4.90 1.20
Earnings yield (2.33%) 5.48% (1.71%)
Free cash flow yield (8.49%) 6.59% 4.26%

Profitability

Metric BIDU RDDT Internet Content & Information median
Gross margin 40.92% 91.55% 63.25%
Operating margin (5.36%) 29.40% (1.87%)
Net margin (2.58%) 32.11% (1.37%)
Free cash flow margin 0.00% 38.79% 3.47%
Return on equity 0.00% 32.03% (1.19%)
Return on assets (0.73%) 29.00% 0.00%
Return on invested capital (2.17%) 103.51% 0.00%

Growth

Metric BIDU RDDT Internet Content & Information median
Revenue growth (TTM) 2.43% 62.18% 6.92%
EPS growth (last fiscal year) (74.82%) 178.68% 34.37%
Revenue growth, 5-year CAGR 2.38% — 10.46%
Net income growth, 5-year CAGR (25.34%) — 0.00%

Health

Metric BIDU RDDT Internet Content & Information median
Debt to equity 0.29 0.00 0.01
Current ratio 2.33 10.80 1.84
Net debt to EBITDA (2.46) (5.41) (0.53)

Dividend

Metric BIDU RDDT Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric BIDU RDDT Internet Content & Information median
Market cap 21.95b 18.11b 693.23m

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