National CineMedia Inc (NCMI)vsReddit, Inc. (RDDT)
NCMI
National CineMedia Inc
$1.75
-4.89%
COMMUNICATION SERVICES · Cap: $177.79M
RDDT
Reddit, Inc.
$129.90
-3.79%
COMMUNICATION SERVICES · Cap: $30.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 1016% more annual revenue ($2.78B vs $249.00M). RDDT leads profitability with a 31.4% profit margin vs -3.1%. NCMI appears more attractively valued with a PEG of 0.70. RDDT earns a higher WallStSmart Score of 77/100 (B+).
NCMI
Buy56
out of 100
Grade: C
RDDT
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.4%
Fair Value
$6.66
Current Price
$1.75
$4.91 discount
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$129.90
$7.88 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Earnings expanding 20.8% YoY
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
Smaller company, higher risk/reward
ROE of -2.4% — below average capital efficiency
Negative free cash flow — burning cash
Currently unprofitable
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : NCMI
The strongest argument for NCMI centers on Price/Book, Debt/Equity, PEG Ratio. Revenue growth of 12.7% demonstrates continued momentum. PEG of 0.70 suggests the stock is reasonably priced for its growth.
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 : NCMI
The primary concerns for NCMI are Market Cap, Return on Equity, Free Cash Flow.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Key Dynamics to Monitor
NCMI profiles as a turnaround stock while RDDT is a growth play — different risk/reward profiles.
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.
Bottom Line
RDDT scores higher overall (77/100 vs 56/100), backed by strong 31.4% margins and 61.1% revenue growth. NCMI offers better value entry with a 49.4% margin of safety. Both earn "Strong Buy" and "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.
National CineMedia Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates a theatrical advertising network in North America. The company is headquartered in Centennial, Colorado.
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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