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 $105.0B against $29.5B — 3.6× the size. Spotify Technology trades at the lower P/E: 27.0× against 32.8×. 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 32.84 26.96 10.24
P/S 10.39 4.97 0.87
P/B 8.79 10.77 1.32
Price to free cash flow 28.34 28.04 8.85
EV/EBITDA 32.54 29.76 8.86
EV/Sales 9.39 4.52 1.15
Earnings yield 3.04% 3.71% (1.58%)
Free cash flow yield 3.53% 3.57% 2.32%

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% —
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 — — 3.19%
Payout ratio — 0.00 0.00

Size

Metric RDDT SPOT Internet Content & Information median
Market cap 29.53b 105.04b 283.68m

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