Reddit, Inc. (RDDT)vsTKO Group Holdings, Inc. (TKO)
RDDT
Reddit, Inc.
$153.95
-0.91%
COMMUNICATION SERVICES · Cap: $31.65B
TKO
TKO Group Holdings, Inc.
$184.34
-1.89%
COMMUNICATION SERVICES · Cap: $36.56B
Smart Verdict
WallStSmart Research — data-driven comparison
TKO Group Holdings, Inc. generates 91% more annual revenue ($5.30B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 4.3%. RDDT appears more attractively valued with a PEG of 1.15. RDDT earns a higher WallStSmart Score of 75/100 (B+).
RDDT
Strong Buy75
out of 100
Grade: B+
TKO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RDDT.
Margin of Safety
-27.7%
Fair Value
$164.78
Current Price
$184.34
$19.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Strong operational efficiency at 32.4%
18.2% revenue growth
Areas to Watch
Trading at 9.0x book value
Premium valuation, high expectations priced in
Expensive relative to growth rate
ROE of 6.8% — below average capital efficiency
4.3% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TKO
The strongest argument for TKO centers on Operating Margin, Revenue Growth. Revenue growth of 18.2% demonstrates continued momentum.
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.
Bear Case : TKO
The primary concerns for TKO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 67.5x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
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.
TKO generates stronger free cash flow (349M), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RDDT scores higher overall (75/100 vs 57/100), backed by strong 31.4% margins and 61.1% 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.
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