META vs. RDDT: Meta Platforms vs. Reddit Stock Comparison

Company Profile

Meta Platforms (META) and Reddit (RDDT) are both classified in the Interactive Media & Services sub-industry within the broader Interactive Media & Services industry, placing them in the closest GICS peer bucket.

Meta Platforms (META) has been public since May 18, 2012, giving it a longer listed trading history, while Reddit (RDDT) listed on March 21, 2024 and still has a shorter public-market record.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Reddit (RDDT) carries a highly aggressive beta of 2.17, indicating much higher sensitivity to broad-market moves, whereas Meta Platforms (META) is closer to market-like at 1.26 — a noticeable difference in market-sensitivity profile.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Meta Platforms (META) at 32.26% and Reddit (RDDT) at 32.03% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

For every dollar of sales, both Meta Platforms (META) at 31.15% and Reddit (RDDT) at 32.11% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

Both Meta Platforms (META) at 35.41% and Reddit (RDDT) at 29.23% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

Profitability Metrics

Growth

Both companies are growing quickly, but Reddit (RDDT) at 69.40% is the standout with revenue growth above its industry range; Meta Platforms (META) at 22.17% also sits in the top quartile.

Only one side can be read here: Meta Platforms (META) reports EPS growth of -1.55%, ranked against its industry; Reddit (RDDT) has no EPS growth figure this period.

Growth Metrics

Financial Strength

Meta Platforms (META) at 1.90 keeps current ratio within its industry’s typical mid-range, while Reddit (RDDT) at 10.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Reddit (RDDT) at 0.01 keeps leverage in the lower industry quartile, while Meta Platforms (META) at 0.42 runs a more typical debt-to-equity mix.

Financial Strength Metrics

Dividends

Reddit (RDDT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Meta Platforms (META) reports a yield of 0.35%, ranking against industry peers normally.

Reddit (RDDT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Meta Platforms (META) reports a payout of 7.16%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both Meta Platforms (META) at 20.82 and Reddit (RDDT) at 19.41 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

Both Meta Platforms (META) at 6.46 and Reddit (RDDT) at 5.94 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

Reddit (RDDT) at 5.13 is valued about in line with its industry on P/B ratio, while Meta Platforms (META) at 5.73 carries an above-peer premium to book — META is pricier on assets.

Valuation Metrics