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NOW vs. RDDT: A Head-to-Head Stock Comparison

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Here’s a clear look at NOW and RDDT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolNOWRDDT
Company NameServiceNow, Inc.Reddit, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareInteractive Media & Services
Market Capitalization189.74 billion USD37.86 billion USD
ExchangeNYSENYSE
Listing DateJune 29, 2012March 21, 2024
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NOW 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.

NOW vs. RDDT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNOWRDDT
5-Day Price Return0.46%0.68%
13-Week Price Return-9.80%38.89%
26-Week Price Return18.12%108.76%
52-Week Price Return0.93%187.18%
Month-to-Date Return-0.65%-12.04%
Year-to-Date Return-13.75%23.77%
10-Day Avg. Volume1.26M6.39M
3-Month Avg. Volume1.49M7.12M
3-Month Volatility29.73%65.58%
Beta0.972.11

Profitability

Return on Equity (TTM)

NOW

16.62%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

NOW’s Return on Equity of 16.62% 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
33.08%
Median
10.37%
Q1
5.76%
Min
-24.17%

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.

NOW vs. RDDT: A comparison of their Return on Equity (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Net Profit Margin (TTM)

NOW

13.78%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

RDDT

12.97%

Interactive Media & Services Industry

Max
49.74%
Q3
29.54%
Median
20.53%
Q1
7.52%
Min
-14.52%

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.

NOW vs. RDDT: A comparison of their Net Profit Margin (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Operating Profit Margin (TTM)

NOW

13.28%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

RDDT

7.87%

Interactive Media & Services Industry

Max
65.96%
Q3
36.82%
Median
18.53%
Q1
7.69%
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.

NOW vs. RDDT: A comparison of their Operating Profit Margin (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Profitability at a Glance

SymbolNOWRDDT
Return on Equity (TTM)16.62%9.93%
Return on Assets (TTM)8.12%9.04%
Net Profit Margin (TTM)13.78%12.97%
Operating Profit Margin (TTM)13.28%7.87%
Gross Profit Margin (TTM)78.52%91.04%

Financial Strength

Current Ratio (MRQ)

NOW

1.09

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

RDDT

12.00

Interactive Media & Services Industry

Max
3.92
Q3
2.72
Median
1.85
Q1
1.20
Min
0.25

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.

NOW vs. RDDT: A comparison of their Current Ratio (MRQ) against their respective Software and Interactive Media & Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NOW

0.14

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

NOW’s Debt-to-Equity Ratio of 0.14 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
0.85
Q3
0.49
Median
0.29
Q1
0.04
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.

NOW vs. RDDT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Interactive Media & Services industry benchmarks.

Interest Coverage Ratio (TTM)

NOW

32.13

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

NOW’s Interest Coverage Ratio of 32.13 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

RDDT

--

Interactive Media & Services Industry

Max
23.65
Q3
16.48
Median
6.73
Q1
-0.87
Min
-3.62

Interest Coverage Ratio data for RDDT is currently unavailable.

NOW vs. RDDT: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Financial Strength at a Glance

SymbolNOWRDDT
Current Ratio (MRQ)1.0912.00
Quick Ratio (MRQ)0.9911.89
Debt-to-Equity Ratio (MRQ)0.140.00
Interest Coverage Ratio (TTM)32.13--

Growth

Revenue Growth

NOW vs. RDDT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NOW vs. RDDT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NOW

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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.

RDDT

0.00%

Interactive Media & Services Industry

Max
3.07%
Q3
1.27%
Median
0.28%
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.

NOW vs. RDDT: A comparison of their Dividend Yield (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Dividend Payout Ratio (TTM)

NOW

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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
101.53%
Q3
40.64%
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.

NOW vs. RDDT: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Dividend at a Glance

SymbolNOWRDDT
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NOW

113.23

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

A P/E Ratio of 113.23 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

RDDT

175.00

Interactive Media & Services Industry

Max
50.72
Q3
41.60
Median
25.84
Q1
18.18
Min
1.76

At 175.00, 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.

NOW vs. RDDT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Price-to-Sales Ratio (TTM)

NOW

15.60

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

NOW’s P/S Ratio of 15.60 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

RDDT

22.70

Interactive Media & Services Industry

Max
23.76
Q3
11.40
Median
7.69
Q1
2.49
Min
0.00

RDDT’s P/S Ratio of 22.70 is in the upper echelon for the Interactive Media & Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

NOW vs. RDDT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Interactive Media & Services industry benchmarks.

Price-to-Book Ratio (MRQ)

NOW

19.48

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

NOW’s P/B Ratio of 19.48 is in the upper tier for the Software 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.

RDDT

11.64

Interactive Media & Services Industry

Max
16.71
Q3
9.00
Median
3.97
Q1
2.19
Min
0.33

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.

NOW vs. RDDT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Interactive Media & Services industry benchmarks.

Valuation at a Glance

SymbolNOWRDDT
Price-to-Earnings Ratio (TTM)113.23175.00
Price-to-Sales Ratio (TTM)15.6022.70
Price-to-Book Ratio (MRQ)19.4811.64
Price-to-Free Cash Flow Ratio (TTM)49.4395.40