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

Baidu, Inc. and Reddit Inc. are both Internet Content & Information companies. Reddit Inc. is the larger, with a market value of $30.7B against $22.8B — 1.3× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Reddit Inc. trades at 34.0×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 2.43%. Reddit Inc. has the higher net margin (31.4% vs −2.38%) and the higher return on invested capital (98.3% vs −2.17%). Across the 18 metrics below, Reddit Inc. leads on 15 and Baidu, Inc. on 3.

Valuation

Metric BIDU RDDT Internet Content & Information median
P/E n/m 34.02 11.54
P/S 1.45 10.76 0.86
P/B 0.69 9.10 1.20
Price to free cash flow 367.12 29.36 9.63
EV/EBITDA n/m 33.84 8.68
EV/Sales 0.78 9.76 1.18
Earnings yield (1.90%) 2.94% (2.42%)
Free cash flow yield 0.27% 3.41% 2.27%

Profitability

Metric BIDU RDDT Internet Content & Information median
Gross margin 40.92% 91.44% 66.84%
Operating margin (5.36%) 28.25% (3.41%)
Net margin (2.38%) 31.35% (3.02%)
Free cash flow margin 0.00% 36.66% 1.75%
Return on equity 0.00% 30.71% 0.00%
Return on assets (0.67%) 27.79% (0.36%)
Return on invested capital (2.17%) 98.25% 0.00%

Growth

Metric BIDU RDDT Internet Content & Information median
Revenue growth (TTM) 2.43% 66.59% 2.65%
EPS growth (last fiscal year) (74.82%) 178.68% 34.45%
Revenue growth, 5-year CAGR 2.38% — 9.73%
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 10.49 1.82
Net debt to EBITDA (2.46) (5.41) (0.48)

Dividend

Metric BIDU RDDT Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric BIDU RDDT Internet Content & Information median
Market cap 22.80b 30.66b 318.52m

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