Reddit Inc. (RDDT) vs Zillow Group, Inc. (Z)

Reddit Inc. and Zillow Group, Inc. are both Internet Content & Information companies. Reddit Inc. is the larger, with a market value of $30.7B against $7.1B — 4.3× the size. Reddit Inc. trades at the lower P/E: 34.0× against 140×. Reddit Inc. grew revenue faster over the last twelve months: 66.6% against 17.7%. Reddit Inc. has the higher net margin (31.4% vs 1.96%) and the higher return on invested capital (98.3% vs 0.18%). Across the 20 metrics below, Reddit Inc. leads on 16 and Zillow Group, Inc. on 4.

Valuation

Metric RDDT Z Internet Content & Information median
P/E 34.02 139.86 11.54
P/S 10.76 2.50 0.86
P/B 9.10 1.63 1.20
Price to free cash flow 29.36 31.87 9.63
EV/EBITDA 33.84 23.81 8.68
EV/Sales 9.76 2.59 1.18
Earnings yield 2.94% 0.71% (2.42%)
Free cash flow yield 3.41% 3.14% 2.27%

Profitability

Metric RDDT Z Internet Content & Information median
Gross margin 91.44% 72.88% 66.84%
Operating margin 28.25% 0.43% (3.41%)
Net margin 31.35% 1.96% (3.02%)
Free cash flow margin 36.66% 7.83% 1.75%
Return on equity 30.71% 1.21% 0.00%
Return on assets 27.79% 1.03% (0.36%)
Return on invested capital 98.25% 0.18% 0.00%

Growth

Metric RDDT Z Internet Content & Information median
Revenue growth (TTM) 66.59% 17.67% 2.65%
EPS growth (last fiscal year) 178.68% 118.75% 34.45%
Revenue growth, 5-year CAGR — 9.73% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric RDDT Z Internet Content & Information median
Debt to equity 0.00 0.11 0.01
Current ratio 10.49 1.92 1.82
Net debt to EBITDA (5.41) (3.61) (0.48)

Dividend

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

Size

Metric RDDT Z Internet Content & Information median
Market cap 30.66b 7.12b 318.52m

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