Pinterest, Inc. (PINS) vs Reddit Inc. (RDDT)

Pinterest, Inc. and Reddit Inc. are both Internet Content & Information companies. Reddit Inc. is the larger, with a market value of $30.7B against $12.9B — 2.4× the size. Reddit Inc. trades at the lower P/E: 34.0× against 62.6×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 16.6%. Reddit Inc. has the higher net margin (31.4% vs 5.46%) and the higher return on invested capital (98.3% vs 5.39%). Across the 20 metrics below, Reddit Inc. leads on 14 and Pinterest, Inc. on 6.

Valuation

Metric PINS RDDT Internet Content & Information median
P/E 62.60 34.02 11.54
P/S 2.71 10.76 0.86
P/B 4.26 9.10 1.20
Price to free cash flow 9.63 29.36 9.63
EV/EBITDA 49.34 33.84 8.68
EV/Sales 2.64 9.76 1.18
Earnings yield 1.60% 2.94% (2.42%)
Free cash flow yield 10.38% 3.41% 2.27%

Profitability

Metric PINS RDDT Internet Content & Information median
Gross margin 79.47% 91.44% 66.84%
Operating margin 4.92% 28.25% (3.41%)
Net margin 5.46% 31.35% (3.02%)
Free cash flow margin 28.11% 36.66% 1.75%
Return on equity 6.46% 30.71% 0.00%
Return on assets 4.90% 27.79% (0.36%)
Return on invested capital 5.39% 98.25% 0.00%

Growth

Metric PINS RDDT Internet Content & Information median
Revenue growth (TTM) 16.64% 66.59% 2.65%
EPS growth (last fiscal year) (77.15%) 178.68% 34.45%
Revenue growth, 5-year CAGR 20.06% — 9.73%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PINS RDDT Internet Content & Information median
Debt to equity 0.34 0.00 0.01
Current ratio 3.81 10.49 1.82
Net debt to EBITDA (7.55) (5.41) (0.48)

Dividend

Metric PINS RDDT Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric PINS RDDT Internet Content & Information median
Market cap 12.86b 30.66b 318.52m

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