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Reddit Inc. (RDDT) vs Spotify Technology (SPOT)

Reddit Inc. and Spotify Technology are both Internet Content & Information companies. Spotify Technology is the larger, with a market value of $109.8B against $30.7B — 3.6× the size. Spotify Technology trades at the lower P/E: 28.0× against 34.0×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 16.8%. Reddit Inc. has the higher net margin (31.4% vs 18.2%) and the higher return on invested capital (98.3% vs 0.00%). Across the 19 metrics below, Reddit Inc. leads on 11 and Spotify Technology on 8.

Valuation

Metric RDDT SPOT Internet Content & Information median
P/E 34.02 28.04 11.54
P/S 10.76 5.17 0.86
P/B 9.10 11.20 1.20
Price to free cash flow 29.36 29.17 9.63
EV/EBITDA 33.84 31.08 8.68
EV/Sales 9.76 4.72 1.18
Earnings yield 2.94% 3.57% (2.42%)
Free cash flow yield 3.41% 3.43% 2.27%

Profitability

Metric RDDT SPOT Internet Content & Information median
Gross margin 91.44% 32.79% 66.84%
Operating margin 28.25% 14.61% (3.41%)
Net margin 31.35% 18.18% (3.02%)
Free cash flow margin 36.66% 17.71% 1.75%
Return on equity 30.71% 44.47% 0.00%
Return on assets 27.79% 24.57% (0.36%)
Return on invested capital 98.25% 0.00% 0.00%

Growth

Metric RDDT SPOT Internet Content & Information median
Revenue growth (TTM) 66.59% 16.83% 2.65%
EPS growth (last fiscal year) 178.68% 99.83% 34.45%
Revenue growth, 5-year CAGR — 16.65% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric RDDT SPOT Internet Content & Information median
Debt to equity 0.00 0.00 0.01
Current ratio 10.49 2.11 1.82
Net debt to EBITDA (5.41) (4.12) (0.48)

Dividend

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

Size

Metric RDDT SPOT Internet Content & Information median
Market cap 30.66b 109.81b 318.52m

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