Teads (NASDAQ:TEAD – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Profitability
This table compares Teads and Reddit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teads | -43.32% | -49.37% | -6.14% |
| 31.35% | 29.02% | 26.32% |
Volatility & Risk
Teads has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
Insider & Institutional Ownership
Valuation & Earnings
This table compares Teads 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 | |
| Teads | $1.30 billion | 0.03 | -$517.07 million | ($5.53) | -0.08 |
| $2.78 billion | 10.29 | $529.72 million | $4.30 | 34.58 |
Reddit has higher revenue and earnings than Teads. Teads is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Teads and Reddit, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teads | 1 | 2 | 1 | 0 | 2.00 |
| 0 | 10 | 17 | 2 | 2.72 |
Teads currently has a consensus price target of $1.00, indicating a potential upside of 138.04%. Reddit has a consensus price target of $219.29, indicating a potential upside of 47.49%. Given Teads’ higher probable upside, research analysts clearly believe Teads is more favorable than Reddit.
Summary
Reddit beats Teads on 13 of the 15 factors compared between the two stocks.
About Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
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.
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