Reddit, Inc. (RDDT)vsKartoon Studios, Inc. (TOON)
RDDT
Reddit, Inc.
$134.67
-1.29%
COMMUNICATION SERVICES · Cap: $30.04B
TOON
Kartoon Studios, Inc.
$0.52
+1.08%
COMMUNICATION SERVICES · Cap: $32.59M
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 8416% more annual revenue ($2.78B vs $32.63M). RDDT leads profitability with a 31.4% profit margin vs 26.9%. TOON trades at a lower P/E of 6.5x. RDDT earns a higher WallStSmart Score of 77/100 (B+).
RDDT
Strong Buy77
out of 100
Grade: B+
TOON
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$134.66
$3.12 premium
Intrinsic value data unavailable for TOON.
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -114.4% — below average capital efficiency
Revenue declined 43.4%
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 : TOON
The strongest argument for TOON centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 26.9% and operating margin at -58.6%.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : TOON
The primary concerns for TOON are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
RDDT profiles as a growth stock while TOON is a declining play — different risk/reward profiles.
TOON carries more volatility with a beta of 2.06 — 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 53/100), 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.
Kartoon Studios, Inc.
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Kartoon Studios Inc., a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children globally. The company is headquartered in Beverly Hills, California.
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