Netflix Inc (NFLX)vsReddit, Inc. (RDDT)
NFLX
Netflix Inc
$81.46
-1.99%
COMMUNICATION SERVICES · Cap: $306.34B
RDDT
Reddit, Inc.
$153.95
-0.91%
COMMUNICATION SERVICES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 1641% more annual revenue ($48.37B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 28.2%. RDDT appears more attractively valued with a PEG of 1.15. RDDT earns a higher WallStSmart Score of 75/100 (B+).
NFLX
Strong Buy71
out of 100
Grade: B
RDDT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.6%
Fair Value
$56.52
Current Price
$81.46
$24.94 premium
Intrinsic value data unavailable for RDDT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 45 in profit
Strong operational efficiency at 33.4%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Generating 1.4B in free cash flow
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
Expensive relative to growth rate
Trading at 11.3x book value
Trading at 9.0x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 33.4%. Revenue growth of 13.4% 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 : NFLX
The primary concerns for NFLX are PEG Ratio, Price/Book.
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
NFLX profiles as a mature stock while RDDT is a growth play — different risk/reward profiles.
RDDT carries more volatility with a beta of 2.03 — expect wider price swings.
RDDT is growing revenue faster at 61.1% — sustainability is the question.
NFLX generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
RDDT scores higher overall (75/100 vs 71/100), backed by strong 31.4% margins and 61.1% revenue growth. 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.
Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
Visit Website →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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