WallStSmart

Alphabet Inc Class A (GOOGL)vsReddit, Inc. (RDDT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class A generates 15945% more annual revenue ($445.87B vs $2.78B). GOOGL leads profitability with a 54.8% profit margin vs 31.4%. RDDT appears more attractively valued with a PEG of 0.77. RDDT earns a higher WallStSmart Score of 77/100 (B+).

GOOGL

Strong Buy

76

out of 100

Grade: B+

Growth: 8.7Profit: 9.5Value: 8.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.92

RDDT

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGLUndervalued (+48.8%)

Margin of Safety

+48.8%

Fair Value

$661.47

Current Price

$347.33

$314.14 discount

UndervaluedFair: $661.47Overvalued

Intrinsic value data unavailable for RDDT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$4.14T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.1%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
54.8%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

EPS GrowthGrowth
294.0%10/10

Earnings expanding 294.0% YoY

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

RDDT6 strengths · Avg: 9.8/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Revenue GrowthGrowth
61.1%10/10

Revenue surging 61.1% year-over-year

EPS GrowthGrowth
177.8%10/10

Earnings expanding 177.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.6610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.5%9/10

Every $100 of equity generates 27 in profit

Areas to Watch

GOOGL1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-5.86B2/10

Negative free cash flow — burning cash

RDDT2 concerns · Avg: 4.0/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOGL

The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 54.8% and operating margin at 34.0%. Revenue growth of 24.2% demonstrates continued momentum.

Bull Case : RDDT

The strongest argument for RDDT centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 31.4% and operating margin at 28.8%. Revenue growth of 61.1% demonstrates continued momentum.

Bear Case : GOOGL

The primary concerns for GOOGL are Free Cash Flow.

Bear Case : RDDT

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

Key Dynamics to Monitor

RDDT carries more volatility with a beta of 2.02 — expect wider price swings.

RDDT is growing revenue faster at 61.1% — sustainability is the question.

RDDT generates stronger free cash flow (261M), providing more financial flexibility.

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

Bottom Line

RDDT scores higher overall (77/100 vs 76/100), backed by strong 31.4% margins and 61.1% revenue growth. GOOGL offers better value entry with a 48.8% 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 A

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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