WallStSmart

Nebius Group N.V. (NBIS)vsReddit, Inc. (RDDT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Reddit, Inc. generates 316% more annual revenue ($2.20B vs $529.80M). RDDT leads profitability with a 24.0% profit margin vs 19.2%. NBIS appears more attractively valued with a PEG of 0.63. RDDT earns a higher WallStSmart Score of 76/100 (B+).

NBIS

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.92

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

NBISSignificantly Overvalued (-10706.1%)

Margin of Safety

-10706.1%

Fair Value

$0.82

Current Price

$118.56

$117.74 premium

UndervaluedFair: $0.82Overvalued
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

NBIS3 strengths · Avg: 9.3/10
Return on EquityProfitability
74.0%10/10

Every $100 of equity generates 74 in profit

Revenue GrowthGrowth
501.0%10/10

Revenue surging 501.0% year-over-year

PEG RatioValuation
0.638/10

Growing faster than its price suggests

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

NBIS4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.063/10

Elevated debt levels

P/E RatioValuation
1082.1x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-1.22B2/10

Negative free cash flow — burning cash

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 : NBIS

The strongest argument for NBIS centers on Return on Equity, Revenue Growth, PEG Ratio. Profitability is solid with margins at 19.2% and operating margin at -103.0%. Revenue growth of 501.0% 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 : NBIS

The primary concerns for NBIS are EPS Growth, Debt/Equity, P/E Ratio. A P/E of 1082.1x leaves little room for execution misses.

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

NBIS is growing revenue faster at 501.0% — sustainability is the question.

RDDT generates stronger free cash flow (264M), providing more financial flexibility.

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

Bottom Line

RDDT scores higher overall (76/100 vs 47/100), backed by strong 24.0% margins and 69.7% revenue growth. 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.

Nebius Group N.V.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Nebius Group N.V. (Ticker: NBIS) is an innovative technology firm focused on delivering advanced digital solutions that enhance client engagement and operational efficiency across various industries. Leveraging cutting-edge technologies such as cloud computing, artificial intelligence, and data analytics, Nebius empowers businesses to effectively navigate the complexities of the digital landscape. With a robust portfolio of intellectual property and strategic partnerships, the company is well-positioned to capitalize on growth opportunities in the rapidly evolving tech sector, making it an attractive investment for institutional investors aiming to access high-growth potential in technology-driven markets.

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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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