WallStSmart

Newsmax, Inc. (NMAX)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Reddit, Inc. generates 1267% more annual revenue ($2.78B vs $203.29M). RDDT leads profitability with a 31.4% profit margin vs -3.1%. RDDT trades at a lower P/E of 36.3x. RDDT earns a higher WallStSmart Score of 77/100 (B+).

NMAX

Avoid

26

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 4.0Quality: 6.0
Piotroski: 3/9Altman Z: -1.45

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

Intrinsic value data unavailable for NMAX.

RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$134.66

$3.12 premium

UndervaluedFair: $137.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NMAX2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

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

NMAX4 concerns · Avg: 3.5/10
Price/BookValuation
9.2x4/10

Trading at 9.2x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.13B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.4%3/10

Operating margin of 2.4%

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 : NMAX

The strongest argument for NMAX centers on Debt/Equity, Revenue Growth. Revenue growth of 16.5% 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 : NMAX

The primary concerns for NMAX are Price/Book, EPS Growth, Market Cap. A P/E of 437.0x leaves little room for execution misses.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

RDDT is growing revenue faster at 61.1% — sustainability is the question.

RDDT generates stronger free cash flow (261M), providing more financial flexibility.

Monitor BROADCASTING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RDDT scores higher overall (77/100 vs 26/100), backed by strong 31.4% margins and 61.1% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Newsmax, Inc.

COMMUNICATION SERVICES · BROADCASTING · USA

Newsmax Inc., is television broadcaster and multi-platform content publisher. The company is headquartered in Boca Raton, Florida.

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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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