Reddit, Inc. (RDDT)vsYelp Inc (YELP)
RDDT
Reddit, Inc.
$129.90
-3.79%
COMMUNICATION SERVICES · Cap: $30.04B
YELP
Yelp Inc
$18.42
-1.76%
COMMUNICATION SERVICES · Cap: $1.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Reddit, Inc. generates 89% more annual revenue ($2.78B vs $1.47B). RDDT leads profitability with a 31.4% profit margin vs 8.6%. YELP appears more attractively valued with a PEG of 0.40. RDDT earns a higher WallStSmart Score of 77/100 (B+).
RDDT
Strong Buy77
out of 100
Grade: B+
YELP
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.7%
Fair Value
$137.78
Current Price
$129.90
$7.88 premium
Margin of Safety
+79.0%
Fair Value
$110.46
Current Price
$18.42
$92.04 discount
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
Growing faster than its price suggests
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
1.4% revenue growth
Smaller company, higher risk/reward
Earnings declined 14.9%
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 : YELP
The strongest argument for YELP centers on PEG Ratio, P/E Ratio, Debt/Equity. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : RDDT
The primary concerns for RDDT are P/E Ratio.
Bear Case : YELP
The primary concerns for YELP are Revenue Growth, Market Cap, EPS Growth.
Key Dynamics to Monitor
RDDT profiles as a growth stock while YELP is a value play — different risk/reward profiles.
RDDT carries more volatility with a beta of 2.05 — 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 61/100), backed by strong 31.4% margins and 61.1% revenue growth. YELP offers better value entry with a 79.0% margin of safety. 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.
Yelp Inc
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company is headquartered in San Francisco, California.
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