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 $3.45T against $18.1B — 190.2× the size. Alphabet Inc. trades at the lower P/E: 14.6× against 18.2×. Reddit Inc. grew revenue faster over the last twelve months: 62.2% against 22.2%. Alphabet Inc. has the higher net margin (50.0% vs 32.1%) and the lower return on invested capital (18.3% vs 103.5%). Across the 20 metrics below, Reddit Inc. leads on 14 and Alphabet Inc. on 6.

Valuation

Metric GOOGL RDDT Internet Content & Information median
P/E 14.61 18.25 12.38
P/S 7.37 5.88 0.93
P/B 5.27 5.07 1.24
Price to free cash flow 175.85 15.17 10.76
EV/EBITDA 18.02 16.37 10.74
EV/Sales 7.07 4.90 1.20
Earnings yield 6.84% 5.48% (1.71%)
Free cash flow yield 0.57% 6.59% 4.26%

Profitability

Metric GOOGL RDDT Internet Content & Information median
Gross margin 60.86% 91.55% 63.25%
Operating margin 33.32% 29.40% (1.87%)
Net margin 49.95% 32.11% (1.37%)
Free cash flow margin 4.19% 38.79% 3.47%
Return on equity 44.98% 32.03% (1.19%)
Return on assets 30.56% 29.00% 0.00%
Return on invested capital 18.25% 103.51% 0.00%

Growth

Metric GOOGL RDDT Internet Content & Information median
Revenue growth (TTM) 22.21% 62.18% 6.92%
EPS growth (last fiscal year) 34.45% 178.68% 34.37%
Revenue growth, 5-year CAGR 17.15% — 10.46%
Net income growth, 5-year CAGR 26.83% — 0.00%

Health

Metric GOOGL RDDT Internet Content & Information median
Debt to equity 0.18 0.00 0.01
Current ratio 2.79 10.80 1.84
Net debt to EBITDA (0.53) (5.41) (0.53)

Dividend

Metric GOOGL RDDT Internet Content & Information median
Dividend yield 0.30% — 1.19%
Payout ratio 0.04 — 0.27

Size

Metric GOOGL RDDT Internet Content & Information median
Market cap 3.45t 18.11b 693.23m

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