Reddit (NYSE:RDDT) vs. Teads (NASDAQ:TEAD) Head-To-Head Survey

Teads (NASDAQ:TEAD) and Reddit (NYSE:RDDT) 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%
Reddit	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

60.4% of Teads shares are owned by institutional investors. 12.0% of Teads shares are owned by insiders. Comparatively, 28.5% of Reddit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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
Reddit	$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
Reddit	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.