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

Reddit Inc. and Zillow Group, Inc. are both Internet Content & Information companies. Reddit Inc. is the larger, with a market value of $18.1B against $6.9B — 2.6× the size. Zillow Group, 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 15.1%. Reddit Inc. has the higher net margin (32.1% vs −3.95%) and the higher return on invested capital (103.5% vs −2.33%). Across the 19 metrics below, Reddit Inc. leads on 16 and Zillow Group, Inc. on 3.

Valuation

Metric RDDT ZG Internet Content & Information median
P/E 18.25 n/m 12.38
P/S 5.88 2.44 0.93
P/B 5.07 1.65 1.24
Price to free cash flow 15.17 25.48 10.76
EV/EBITDA 16.37 23.39 10.74
EV/Sales 4.90 2.50 1.20
Earnings yield 5.48% (1.68%) (1.71%)
Free cash flow yield 6.59% 3.92% 4.26%

Profitability

Metric RDDT ZG Internet Content & Information median
Gross margin 91.55% 72.53% 63.25%
Operating margin 29.40% (5.11%) (1.87%)
Net margin 32.11% (3.95%) (1.37%)
Free cash flow margin 38.79% 9.59% 3.47%
Return on equity 32.03% (2.45%) (1.19%)
Return on assets 29.00% (2.05%) 0.00%
Return on invested capital 103.51% (2.33%) 0.00%

Growth

Metric RDDT ZG Internet Content & Information median
Revenue growth (TTM) 62.18% 15.10% 6.92%
EPS growth (last fiscal year) 178.68% 118.75% 34.37%
Revenue growth, 5-year CAGR — 9.73% 10.46%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric RDDT ZG Internet Content & Information median
Debt to equity 0.00 0.09 0.01
Current ratio 10.80 1.76 1.84
Net debt to EBITDA (5.41) (3.61) (0.53)

Dividend

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

Size

Metric RDDT ZG Internet Content & Information median
Market cap 18.11b 6.93b 693.23m

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