Reddit, Inc. (RDDT)vsTKO Group Holdings, Inc. (TKO)
RDDT
Reddit, Inc.
$195.34
-2.48%
COMMUNICATION SERVICES · Cap: $38.56B
TKO
TKO Group Holdings, Inc.
$184.40
-2.01%
COMMUNICATION SERVICES · Cap: $37.16B
Smart Verdict
WallStSmart Research — data-driven comparison
TKO Group Holdings, Inc. generates 105% more annual revenue ($5.06B vs $2.47B). RDDT leads profitability with a 28.6% profit margin vs 4.5%. RDDT appears more attractively valued with a PEG of 1.40. RDDT earns a higher WallStSmart Score of 75/100 (B+).
RDDT
Strong Buy75
out of 100
Grade: B+
TKO
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RDDT.
Margin of Safety
-42.4%
Fair Value
$147.77
Current Price
$184.40
$36.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 69.1% year-over-year
Earnings expanding 675.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Keeps 29 of every $100 in revenue as profit
Earnings expanding 63.0% YoY
Strong operational efficiency at 21.2%
Revenue surging 25.9% year-over-year
Areas to Watch
Trading at 11.8x book value
Premium valuation, high expectations priced in
ROE of 6.7% — below average capital efficiency
4.5% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : RDDT
The strongest argument for RDDT centers on Revenue Growth, EPS Growth, Debt/Equity. Profitability is solid with margins at 28.6% and operating margin at 27.6%. Revenue growth of 69.1% demonstrates continued momentum.
Bull Case : TKO
The strongest argument for TKO centers on EPS Growth, Operating Margin, Revenue Growth. Revenue growth of 25.9% demonstrates continued momentum. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bear Case : RDDT
The primary concerns for RDDT are Price/Book, P/E Ratio. A P/E of 55.8x leaves little room for execution misses.
Bear Case : TKO
The primary concerns for TKO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 72.5x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
RDDT carries more volatility with a beta of 1.94 — expect wider price swings.
RDDT is growing revenue faster at 69.1% — sustainability is the question.
TKO generates stronger free cash flow (675M), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RDDT scores higher overall (75/100 vs 63/100), backed by strong 28.6% margins and 69.1% revenue growth. 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.
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.
TKO Group Holdings, Inc.
COMMUNICATION SERVICES · ENTERTAINMENT · USA
TKO Group Holdings, Inc. is a sports and entertainment company. The company is headquartered in New York, New York.
Compare with Other INTERNET CONTENT & INFORMATION Stocks
Want to dig deeper into these stocks?