WallStSmart

MediaAlpha Inc. (MAX)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Reddit, Inc. generates 127% more annual revenue ($2.78B vs $1.22B). RDDT leads profitability with a 31.4% profit margin vs 7.9%. MAX trades at a lower P/E of 7.3x. RDDT earns a higher WallStSmart Score of 77/100 (B+).

MAX

Hold

50

out of 100

Grade: D+

Growth: 9.3Profit: 7.5Value: 8.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.37

RDDT

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.3Quality: 9.0
Piotroski: 4/9Altman Z: 7.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MAXUndervalued (+58.7%)

Margin of Safety

+58.7%

Fair Value

$18.58

Current Price

$14.75

$3.83 discount

UndervaluedFair: $18.58Overvalued
RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$91.67

$46.11 premium

UndervaluedFair: $137.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MAX4 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
342.2%10/10

Every $100 of equity generates 342 in profit

EPS GrowthGrowth
1412.0%10/10

Earnings expanding 1412.0% YoY

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

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

MAX4 concerns · Avg: 2.8/10
Market CapQuality
$630.41M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
27.3x2/10

Trading at 27.3x book value

RDDT1 concerns · Avg: 4.0/10
P/E RatioValuation
36.3x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : MAX

The strongest argument for MAX centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 25.9% 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 : MAX

The primary concerns for MAX are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 6.22 is elevated, increasing financial risk.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

RDDT carries more volatility with a beta of 2.05 — 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 50/100), backed by strong 31.4% margins and 61.1% revenue growth. MAX offers better value entry with a 58.7% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

MediaAlpha Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

MediaAlpha, Inc., operates an insurance customer acquisition platform in the United States. The company is headquartered in Los Angeles, California.

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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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