Meta Platforms, Inc. (META) vs Reddit Inc. (RDDT)

Meta Platforms, Inc. and Reddit Inc. are both Internet Content & Information companies. Meta Platforms, Inc. is the larger, with a market value of $1.55T against $18.1B — 85.4× the size. Reddit Inc. trades at the lower P/E: 18.2× against 20.4×. Reddit Inc. grew revenue faster over the last twelve months: 62.2% against 27.5%. Reddit Inc. has the higher net margin (32.1% vs 31.2%) and the higher return on invested capital (103.5% vs 18.3%). Across the 20 metrics below, Reddit Inc. leads on 17 and Meta Platforms, Inc. on 3.

Valuation

Metric META RDDT Internet Content & Information median
P/E 20.41 18.25 12.38
P/S 6.40 5.88 0.93
P/B 5.67 5.07 1.24
Price to free cash flow 53.95 15.17 10.76
EV/EBITDA 14.80 16.37 10.74
EV/Sales 6.39 4.90 1.20
Earnings yield 4.90% 5.48% (1.71%)
Free cash flow yield 1.85% 6.59% 4.26%

Profitability

Metric META RDDT Internet Content & Information median
Gross margin 81.03% 91.55% 63.25%
Operating margin 32.86% 29.40% (1.87%)
Net margin 31.15% 32.11% (1.37%)
Free cash flow margin 11.86% 38.79% 3.47%
Return on equity 32.26% 32.03% (1.19%)
Return on assets 19.23% 29.00% 0.00%
Return on invested capital 18.32% 103.51% 0.00%

Growth

Metric META RDDT Internet Content & Information median
Revenue growth (TTM) 27.53% 62.18% 6.92%
EPS growth (last fiscal year) (1.55%) 178.68% 34.37%
Revenue growth, 5-year CAGR 18.51% — 10.46%
Net income growth, 5-year CAGR 15.71% — 0.00%

Health

Metric META RDDT Internet Content & Information median
Debt to equity 0.30 0.00 0.01
Current ratio 1.90 10.80 1.84
Net debt to EBITDA (0.22) (5.41) (0.53)

Dividend

Metric META RDDT Internet Content & Information median
Dividend yield 0.35% — 1.19%
Payout ratio 0.07 — 0.27

Size

Metric META RDDT Internet Content & Information median
Market cap 1.55t 18.11b 693.23m

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