Head-To-Head Contrast: Reddit (NYSE:RDDT) versus DeNA (OTCMKTS:DNACF)

DeNA (OTCMKTS:DNACF) and Reddit (NYSE:RDDT) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares DeNA and Reddit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeNA	28.40%	15.19%	10.71%
Reddit	31.35%	29.02%	26.32%

Analyst Recommendations

This is a summary of current ratings and price targets for DeNA and Reddit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeNA	0	0	0	0	0.00
Reddit	0	11	18	2	2.71

Reddit has a consensus price target of $221.10, indicating a potential upside of 44.86%. Given Reddit’s stronger consensus rating and higher possible upside, analysts clearly believe Reddit is more favorable than DeNA.

Earnings & Valuation

This table compares DeNA and Reddit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeNA	$981.17 million	1.86	$125.72 million	$2.58	5.79
Reddit	$2.20 billion	13.33	$529.72 million	$4.30	35.50

Reddit has higher revenue and earnings than DeNA. DeNA is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

DeNA has a beta of -0.25, suggesting that its stock price is 125% less volatile than the S&P 500. Comparatively, Reddit has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Summary

Reddit beats DeNA on 13 of the 13 factors compared between the two stocks.

About DeNA

DeNA Co., Ltd. develops and operates mobile and online services worldwide. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers social games for PC browsers; AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members’ health data; Haretoke, a web service which provides daily support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Join, a communication app for medical professionals; MySOS, a life-saving and health support app with health and medical record for the user and their family; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; anone, a c ommunication service for seniors; dot-i, a security system; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; PICKFIVE, a NFT card game; and NFT collections. The company was incorporated in 1999 and is based in Tokyo, Japan.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.