Alphabet Inc. (GOOGL) vs Reddit Inc. (RDDT)

Alphabet Inc. and Reddit Inc. are both Internet Content & Information companies. Alphabet Inc. is the larger, with a market value of $4.25T against $30.7B — 138.6× the size. Alphabet Inc. trades at the lower P/E: 16.9× against 34.0×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 20.1%. Alphabet Inc. has the higher net margin (54.8% vs 31.4%) and the lower return on invested capital (18.6% vs 98.3%). Across the 20 metrics below, Alphabet Inc. leads on 10 and Reddit Inc. on 10.

Valuation

Metric GOOGL RDDT Internet Content & Information median
P/E 16.91 34.02 11.54
P/S 9.28 10.76 0.86
P/B 6.65 9.10 1.20
Price to free cash flow 77.68 29.36 9.63
EV/EBITDA 23.11 33.84 8.68
EV/Sales 8.96 9.76 1.18
Earnings yield 5.91% 2.94% (2.42%)
Free cash flow yield 1.29% 3.41% 2.27%

Profitability

Metric GOOGL RDDT Internet Content & Information median
Gross margin 60.90% 91.44% 66.84%
Operating margin 33.11% 28.25% (3.41%)
Net margin 54.75% 31.35% (3.02%)
Free cash flow margin 11.95% 36.66% 1.75%
Return on equity 49.55% 30.71% 0.00%
Return on assets 34.29% 27.79% (0.36%)
Return on invested capital 18.60% 98.25% 0.00%

Growth

Metric GOOGL RDDT Internet Content & Information median
Revenue growth (TTM) 20.05% 66.59% 2.65%
EPS growth (last fiscal year) 34.45% 178.68% 34.45%
Revenue growth, 5-year CAGR 17.15% — 9.73%
Net income growth, 5-year CAGR 26.83% — 0.00%

Health

Metric GOOGL RDDT Internet Content & Information median
Debt to equity 0.15 0.00 0.01
Current ratio 2.72 10.49 1.82
Net debt to EBITDA (0.53) (5.41) (0.48)

Dividend

Metric GOOGL RDDT Internet Content & Information median
Dividend yield 0.25% — 1.07%
Payout ratio 0.04 — 0.28

Size

Metric GOOGL RDDT Internet Content & Information median
Market cap 4.25t 30.66b 318.52m

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