Magnite Inc (MGNI)vsReddit, Inc. (RDDT)
MGNI
Magnite Inc
$23.36
-0.09%
COMMUNICATION SERVICES · Cap: $3.55B
RDDT
Reddit, Inc.
$153.95
-0.91%
COMMUNICATION SERVICES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 274% more annual revenue ($2.78B vs $742.04M). RDDT leads profitability with a 31.4% profit margin vs 22.5%. MGNI appears more attractively valued with a PEG of 0.09. RDDT earns a higher WallStSmart Score of 75/100 (B+).
MGNI
Strong Buy72
out of 100
Grade: B
RDDT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.8%
Fair Value
$28.63
Current Price
$23.36
$5.27 discount
Intrinsic value data unavailable for RDDT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 65.3% YoY
Keeps 23 of every $100 in revenue as profit
Keeps 31 of every $100 in revenue as profit
Revenue surging 61.1% year-over-year
Earnings expanding 177.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Areas to Watch
Distress zone — elevated risk
Trading at 9.0x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : MGNI
The strongest argument for MGNI centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 22.5% and operating margin at 16.2%. Revenue growth of 11.2% 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 : MGNI
The primary concerns for MGNI are Altman Z-Score.
Bear Case : RDDT
The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Key Dynamics to Monitor
MGNI profiles as a mature stock while RDDT is a growth play — different risk/reward profiles.
MGNI carries more volatility with a beta of 2.27 — 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.
Bottom Line
RDDT scores higher overall (75/100 vs 72/100), backed by strong 31.4% margins and 61.1% revenue growth. MGNI offers better value entry with a 58.8% 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.
Magnite Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.
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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