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 $18.1B against $8.6B — 2.1× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Reddit Inc. trades at 18.2×. Reddit Inc. grew revenue faster over the last twelve months: 62.2% against 13.8%. Reddit Inc. has the higher net margin (32.1% vs −2.30%) and the higher return on invested capital (103.5% vs −2.52%). Across the 19 metrics below, Reddit Inc. leads on 14 and Snap Inc. on 5.

Valuation

Metric RDDT SNAP Internet Content & Information median
P/E 18.25 n/m 12.38
P/S 5.88 1.33 0.93
P/B 5.07 3.91 1.24
Price to free cash flow 15.17 11.39 10.76
EV/EBITDA 16.37 165.29 10.74
EV/Sales 4.90 1.44 1.20
Earnings yield 5.48% (1.75%) (1.71%)
Free cash flow yield 6.59% 8.78% 4.26%

Profitability

Metric RDDT SNAP Internet Content & Information median
Gross margin 91.55% 59.11% 63.25%
Operating margin 29.40% (1.81%) (1.87%)
Net margin 32.11% (2.30%) (1.37%)
Free cash flow margin 38.79% 11.83% 3.47%
Return on equity 32.03% (6.78%) (1.19%)
Return on assets 29.00% (2.00%) 0.00%
Return on invested capital 103.51% (2.52%) 0.00%

Growth

Metric RDDT SNAP Internet Content & Information median
Revenue growth (TTM) 62.18% 13.76% 6.92%
EPS growth (last fiscal year) 178.68% 35.71% 34.37%
Revenue growth, 5-year CAGR — 18.80% 10.46%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric RDDT SNAP Internet Content & Information median
Debt to equity 0.00 1.56 0.01
Current ratio 10.80 3.36 1.84
Net debt to EBITDA (5.41) (1.65) (0.53)

Dividend

Metric RDDT SNAP Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric RDDT SNAP Internet Content & Information median
Market cap 18.11b 8.61b 693.23m

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