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 $1.98T against $29.5B — 67.0× the size. Meta Platforms, Inc. trades at the lower P/E: 27.9× against 32.8×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 27.7%. Reddit Inc. has the higher net margin (31.4% vs 29.8%) and the higher return on invested capital (98.3% vs 21.3%). Across the 20 metrics below, Reddit Inc. leads on 13 and Meta Platforms, Inc. on 7.

Valuation

Metric META RDDT Internet Content & Information median
P/E 27.94 32.84 10.24
P/S 8.37 10.39 0.87
P/B 7.32 8.79 1.32
Price to free cash flow 46.65 28.34 8.85
EV/EBITDA 17.37 32.54 8.86
EV/Sales 8.35 9.39 1.15
Earnings yield 3.58% 3.04% (1.58%)
Free cash flow yield 2.14% 3.53% 2.32%

Profitability

Metric META RDDT Internet Content & Information median
Gross margin 81.75% 91.44% 66.84%
Operating margin 38.08% 28.25% (3.41%)
Net margin 29.84% 31.35% (3.02%)
Free cash flow margin 17.95% 36.66% 1.75%
Return on equity 29.85% 30.71% 0.00%
Return on assets 18.29% 27.79% (0.36%)
Return on invested capital 21.34% 98.25% 0.00%

Growth

Metric META RDDT Internet Content & Information median
Revenue growth (TTM) 27.65% 66.59% 2.65%
EPS growth (last fiscal year) (1.55%) 178.68% —
Revenue growth, 5-year CAGR 18.51% — 9.73%
Net income growth, 5-year CAGR 15.71% — 0.00%

Health

Metric META RDDT Internet Content & Information median
Debt to equity 0.32 0.00 0.01
Current ratio 2.23 10.49 1.82
Net debt to EBITDA (0.22) (5.41) (0.48)

Dividend

Metric META RDDT Internet Content & Information median
Dividend yield 0.24% — 3.19%
Payout ratio 0.00 — 0.00

Size

Metric META RDDT Internet Content & Information median
Market cap 1.98t 29.53b 283.68m

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