NTES vs. RDDT: NetEase vs. Reddit Stock Comparison

Company Profile

NetEase (NTES) and Reddit (RDDT) both fall under the Media & Entertainment industry group, but NTES is classified in Entertainment while RDDT is classified in Interactive Media & Services.

NetEase (NTES) carries decades of public-market history since June 30, 2000, while Reddit (RDDT) listed on March 21, 2024 — long-window comparisons have far more historical data on the NTES side.

Reddit (RDDT) trades as ordinary local shares, while NetEase (NTES) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Reddit (RDDT) has a highly aggressive beta of 2.17, indicating much higher sensitivity to broad-market moves, while NetEase (NTES) is defensive at 0.61 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both NetEase (NTES) at 20.37% 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 NetEase (NTES) at 27.88% 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 NetEase (NTES) at 40.16% 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

Reddit (RDDT) at 69.40% clears its industry range for revenue growth, far stronger top-line momentum than NetEase (NTES) at 6.96%, which is closer to a typical peer reading.

Only one side can be read here: NetEase (NTES) reports EPS growth of 14.04%, ranked against its industry; Reddit (RDDT) has no EPS growth figure this period.

Growth Metrics

Financial Strength

Both NetEase (NTES) at 3.45 and Reddit (RDDT) at 10.80 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.

Both NetEase (NTES) at 0.07 and Reddit (RDDT) at 0.01 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.

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 NetEase (NTES) reports a yield of 3.17%, 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 NetEase (NTES) reports a payout of 41.85%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both NetEase (NTES) at 17.98 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.

NetEase (NTES) at 0.71 is priced about in line with its industry on P/S ratio, while Reddit (RDDT) at 5.94 sits in the pricier quartile — RDDT costs more per dollar of sales.

Reddit (RDDT) at 5.13 sits near its industry’s typical P/B ratio, while NetEase (NTES) at 16.57 prices above its benchmark range — NTES looks rich relative to book.

Valuation Metrics