MSTR vs. RDDT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MSTR and RDDT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSTR | RDDT |
|---|---|---|
| Company Name | Strategy Inc | Reddit, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Interactive Media & Services |
| Market Capitalization | 97.65 billion USD | 40.87 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 11, 1998 | March 21, 2024 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MSTR and RDDT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | MSTR | RDDT |
|---|---|---|
| 5-Day Price Return | -7.66% | -10.31% |
| 13-Week Price Return | -16.70% | 102.21% |
| 26-Week Price Return | 5.99% | 6.55% |
| 52-Week Price Return | 154.43% | 301.71% |
| Month-to-Date Return | -14.31% | 35.98% |
| Year-to-Date Return | 18.90% | 33.61% |
| 10-Day Avg. Volume | 12.45M | 7.13M |
| 3-Month Avg. Volume | 12.73M | 8.08M |
| 3-Month Volatility | 52.26% | 65.74% |
| Beta | 3.95 | 2.06 |
Profitability
Return on Equity (TTM)
MSTR
18.10%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
MSTR’s Return on Equity of 18.10% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
RDDT
9.93%
Interactive Media & Services Industry
- Max
- 49.37%
- Q3
- 29.69%
- Median
- 9.73%
- Q1
- 2.47%
- Min
- -26.19%
RDDT’s Return on Equity of 9.93% is on par with the norm for the Interactive Media & Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
MSTR
1,036.61%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
MSTR’s Net Profit Margin of 1,036.61% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
RDDT
12.97%
Interactive Media & Services Industry
- Max
- 50.41%
- Q3
- 29.38%
- Median
- 17.14%
- Q1
- 3.13%
- Min
- -30.88%
RDDT’s Net Profit Margin of 12.97% is aligned with the median group of its peers in the Interactive Media & Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
MSTR
1,435.93%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
MSTR’s Operating Profit Margin of 1,435.93% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
RDDT
7.87%
Interactive Media & Services Industry
- Max
- 65.96%
- Q3
- 36.95%
- Median
- 18.60%
- Q1
- 5.69%
- Min
- -18.13%
RDDT’s Operating Profit Margin of 7.87% is around the midpoint for the Interactive Media & Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MSTR | RDDT |
|---|---|---|
| Return on Equity (TTM) | 18.10% | 9.93% |
| Return on Assets (TTM) | 13.42% | 9.04% |
| Net Profit Margin (TTM) | 1,036.61% | 12.97% |
| Operating Profit Margin (TTM) | 1,435.93% | 7.87% |
| Gross Profit Margin (TTM) | 70.10% | 91.04% |
Financial Strength
Current Ratio (MRQ)
MSTR
0.68
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
MSTR’s Current Ratio of 0.68 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RDDT
12.00
Interactive Media & Services Industry
- Max
- 4.30
- Q3
- 2.68
- Median
- 1.96
- Q1
- 1.21
- Min
- 0.45
RDDT’s Current Ratio of 12.00 is exceptionally high, placing it well outside the typical range for the Interactive Media & Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
MSTR
0.16
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSTR’s Debt-to-Equity Ratio of 0.16 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RDDT
0.00
Interactive Media & Services Industry
- Max
- 0.90
- Q3
- 0.47
- Median
- 0.16
- Q1
- 0.03
- Min
- 0.00
Falling into the lower quartile for the Interactive Media & Services industry, RDDT’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
MSTR
-30.23
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
RDDT
--
Interactive Media & Services Industry
- Max
- 67.60
- Q3
- 29.41
- Median
- 6.36
- Q1
- -0.87
- Min
- -37.02
Interest Coverage Ratio data for RDDT is currently unavailable.
Financial Strength at a Glance
| Symbol | MSTR | RDDT |
|---|---|---|
| Current Ratio (MRQ) | 0.68 | 12.00 |
| Quick Ratio (MRQ) | 0.55 | 11.89 |
| Debt-to-Equity Ratio (MRQ) | 0.16 | 0.00 |
| Interest Coverage Ratio (TTM) | -30.23 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MSTR
0.06%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.06%, MSTR offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 1.87%
- Q3
- 1.08%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RDDT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
MSTR
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 87.35%
- Q3
- 38.67%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RDDT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | MSTR | RDDT |
|---|---|---|
| Dividend Yield (TTM) | 0.06% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
MSTR
19.82
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
In the lower quartile for the Software industry, MSTR’s P/E Ratio of 19.82 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
RDDT
188.91
Interactive Media & Services Industry
- Max
- 87.79
- Q3
- 54.33
- Median
- 25.46
- Q1
- 18.76
- Min
- 6.96
At 188.91, RDDT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Interactive Media & Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
MSTR
205.43
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
With a P/S Ratio of 205.43, MSTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
RDDT
24.50
Interactive Media & Services Industry
- Max
- 19.01
- Q3
- 12.39
- Median
- 6.49
- Q1
- 1.94
- Min
- 0.22
With a P/S Ratio of 24.50, RDDT trades at a valuation that eclipses even the highest in the Interactive Media & Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
MSTR
2.25
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
MSTR’s P/B Ratio of 2.25 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
RDDT
11.64
Interactive Media & Services Industry
- Max
- 11.66
- Q3
- 7.17
- Median
- 4.17
- Q1
- 2.80
- Min
- 0.12
RDDT’s P/B Ratio of 11.64 is in the upper tier for the Interactive Media & Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | MSTR | RDDT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 19.82 | 188.91 |
| Price-to-Sales Ratio (TTM) | 205.43 | 24.50 |
| Price-to-Book Ratio (MRQ) | 2.25 | 11.64 |
| Price-to-Free Cash Flow Ratio (TTM) | 1,619.42 | 102.98 |