WallStSmart

Alphabet Inc Class C (GOOG)vsReddit, Inc. (RDDT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 18190% more annual revenue ($402.84B vs $2.20B). GOOG leads profitability with a 32.8% profit margin vs 24.0%. RDDT appears more attractively valued with a PEG of 1.13. RDDT earns a higher WallStSmart Score of 76/100 (B+).

GOOG

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 10.0Value: 10.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

RDDT

Strong Buy

76

out of 100

Grade: B+

Growth: 10.0Profit: 8.5Value: 5.3Quality: 7.8
Piotroski: 5/9Altman Z: 8.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGUndervalued (+39.4%)

Margin of Safety

+39.4%

Fair Value

$505.44

Current Price

$306.30

$199.14 discount

UndervaluedFair: $505.44Overvalued
RDDTOvervalued (-13.6%)

Margin of Safety

-13.6%

Fair Value

$122.62

Current Price

$142.79

$20.17 premium

UndervaluedFair: $122.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$3.74T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$24.55B10/10

Generating 24.6B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

RDDT6 strengths · Avg: 9.7/10
Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Revenue GrowthGrowth
69.7%10/10

Revenue surging 69.7% year-over-year

EPS GrowthGrowth
247.4%10/10

Earnings expanding 247.4% YoY

Altman Z-ScoreHealth
8.1110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

Areas to Watch

GOOG3 concerns · Avg: 4.0/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
8.9x4/10

Trading at 8.9x book value

RDDT2 concerns · Avg: 3.0/10
Price/BookValuation
9.3x4/10

Trading at 9.3x book value

P/E RatioValuation
53.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.

Bull Case : RDDT

The strongest argument for RDDT centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 24.0% and operating margin at 32.0%. Revenue growth of 69.7% demonstrates continued momentum.

Bear Case : GOOG

The primary concerns for GOOG are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : RDDT

The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 53.4x leaves little room for execution misses.

Key Dynamics to Monitor

RDDT is growing revenue faster at 69.7% — sustainability is the question.

GOOG generates stronger free cash flow (24.6B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RDDT scores higher overall (76/100 vs 69/100), backed by strong 24.0% margins and 69.7% revenue growth. GOOG offers better value entry with a 39.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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Reddit, Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.

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