Reddit Inc. (RDDT) vs Snap Inc. (SNAP)

Reddit Inc. and Snap Inc. are both Internet Content & Information companies. Reddit Inc. is the larger, with a market value of $29.5B against $9.2B — 3.2× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Reddit Inc. trades at 32.8×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 12.7%. Reddit Inc. has the higher net margin (31.4% vs −4.90%) and the higher return on invested capital (98.3% vs −7.22%). Across the 18 metrics below, Reddit Inc. leads on 13 and Snap Inc. on 5.

Valuation

Metric RDDT SNAP Internet Content & Information median
P/E 32.84 n/m 10.24
P/S 10.39 1.42 0.87
P/B 8.79 4.68 1.32
Price to free cash flow 28.34 12.97 8.85
EV/EBITDA 32.54 n/m 8.86
EV/Sales 9.39 1.56 1.15
Earnings yield 3.04% (3.32%) (1.58%)
Free cash flow yield 3.53% 7.71% 2.32%

Profitability

Metric RDDT SNAP Internet Content & Information median
Gross margin 91.44% 57.33% 66.84%
Operating margin 28.25% (5.10%) (3.41%)
Net margin 31.35% (4.90%) (3.02%)
Free cash flow margin 36.66% 11.11% 1.75%
Return on equity 30.71% (15.58%) 0.00%
Return on assets 27.79% (4.19%) (0.36%)
Return on invested capital 98.25% (7.22%) 0.00%

Growth

Metric RDDT SNAP Internet Content & Information median
Revenue growth (TTM) 66.59% 12.65% 2.65%
EPS growth (last fiscal year) 178.68% 35.71% —
Revenue growth, 5-year CAGR — 18.80% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric RDDT SNAP Internet Content & Information median
Debt to equity 0.00 1.83 0.01
Current ratio 10.49 2.94 1.82
Net debt to EBITDA (5.41) (1.65) (0.48)

Dividend

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

Size

Metric RDDT SNAP Internet Content & Information median
Market cap 29.53b 9.21b 283.68m

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