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 $1.88T against $30.7B — 61.2× the size. Meta Platforms, Inc. trades at the lower P/E: 26.4× against 34.0×. 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 26.37 34.02 11.54
P/S 7.90 10.76 0.86
P/B 6.91 9.10 1.20
Price to free cash flow 44.02 29.36 9.63
EV/EBITDA 16.39 33.84 8.68
EV/Sales 7.87 9.76 1.18
Earnings yield 3.79% 2.94% (2.42%)
Free cash flow yield 2.27% 3.41% 2.27%

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% 34.45%
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 0.30% — 1.07%
Payout ratio 0.08 — 0.28

Size

Metric META RDDT Internet Content & Information median
Market cap 1.88t 30.66b 318.52m

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