NOW vs. RDDT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NOW and RDDT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NOW | RDDT |
|---|---|---|
| Company Name | ServiceNow, Inc. | Reddit, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Interactive Media & Services |
| Market Capitalization | 189.74 billion USD | 37.86 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | June 29, 2012 | March 21, 2024 |
| Security Type | Common Stock | Common 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.
Historical Performance at a Glance
| Symbol | NOW | RDDT |
|---|---|---|
| 5-Day Price Return | 0.46% | 0.68% |
| 13-Week Price Return | -9.80% | 38.89% |
| 26-Week Price Return | 18.12% | 108.76% |
| 52-Week Price Return | 0.93% | 187.18% |
| Month-to-Date Return | -0.65% | -12.04% |
| Year-to-Date Return | -13.75% | 23.77% |
| 10-Day Avg. Volume | 1.26M | 6.39M |
| 3-Month Avg. Volume | 1.49M | 7.12M |
| 3-Month Volatility | 29.73% | 65.58% |
| Beta | 0.97 | 2.11 |
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.
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.
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.
Profitability at a Glance
| Symbol | NOW | RDDT |
|---|---|---|
| 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.
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.
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.
Financial Strength at a Glance
| Symbol | NOW | RDDT |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 12.00 |
| Quick Ratio (MRQ) | 0.99 | 11.89 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.00 |
| Interest Coverage Ratio (TTM) | 32.13 | -- |
Growth
Revenue Growth
EPS Growth
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.
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.
Dividend at a Glance
| Symbol | NOW | RDDT |
|---|---|---|
| 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.
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.
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.
Valuation at a Glance
| Symbol | NOW | RDDT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 113.23 | 175.00 |
| Price-to-Sales Ratio (TTM) | 15.60 | 22.70 |
| Price-to-Book Ratio (MRQ) | 19.48 | 11.64 |
| Price-to-Free Cash Flow Ratio (TTM) | 49.43 | 95.40 |