RDDT vs. ROKU: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at RDDT and ROKU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | RDDT | ROKU |
|---|---|---|
| Company Name | Reddit, Inc. | Roku, Inc. |
| Country | United States | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Interactive Media & Services | Entertainment |
| Market Capitalization | 43.94 billion USD | 12.98 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | March 21, 2024 | September 28, 2017 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of RDDT and ROKU 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 | RDDT | ROKU |
|---|---|---|
| 5-Day Price Return | 10.83% | 5.99% |
| 13-Week Price Return | 111.11% | 28.08% |
| 26-Week Price Return | 8.43% | 8.65% |
| 52-Week Price Return | 347.10% | 64.59% |
| Month-to-Date Return | 46.19% | -6.45% |
| Year-to-Date Return | 43.64% | 18.50% |
| 10-Day Avg. Volume | 10.99M | 6.07M |
| 3-Month Avg. Volume | 8.23M | 4.19M |
| 3-Month Volatility | 69.25% | 56.09% |
| Beta | 1.97 | 2.15 |
Profitability
Return on Equity (TTM)
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.
ROKU
-2.44%
Entertainment Industry
- Max
- 42.50%
- Q3
- 22.75%
- Median
- 12.88%
- Q1
- 7.15%
- Min
- -6.84%
ROKU has a negative Return on Equity of -2.44%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
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.
ROKU
-1.40%
Entertainment Industry
- Max
- 45.25%
- Q3
- 23.93%
- Median
- 14.60%
- Q1
- 4.89%
- Min
- -22.94%
ROKU has a negative Net Profit Margin of -1.40%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
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.
ROKU
-3.55%
Entertainment Industry
- Max
- 46.83%
- Q3
- 28.87%
- Median
- 15.26%
- Q1
- 8.95%
- Min
- -5.53%
ROKU has a negative Operating Profit Margin of -3.55%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | RDDT | ROKU |
|---|---|---|
| Return on Equity (TTM) | 9.93% | -2.44% |
| Return on Assets (TTM) | 9.04% | -1.44% |
| Net Profit Margin (TTM) | 12.97% | -1.40% |
| Operating Profit Margin (TTM) | 7.87% | -3.55% |
| Gross Profit Margin (TTM) | 91.04% | 44.04% |
Financial Strength
Current Ratio (MRQ)
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.
ROKU
2.85
Entertainment Industry
- Max
- 6.80
- Q3
- 3.77
- Median
- 1.87
- Q1
- 0.86
- Min
- 0.39
ROKU’s Current Ratio of 2.85 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
ROKU
0.00
Entertainment Industry
- Max
- 1.65
- Q3
- 0.71
- Median
- 0.14
- Q1
- 0.04
- Min
- 0.00
Falling into the lower quartile for the Entertainment industry, ROKU’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)
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.
ROKU
-93.67
Entertainment Industry
- Max
- 62.11
- Q3
- 31.19
- Median
- 7.50
- Q1
- 2.02
- Min
- -6.33
ROKU has a negative Interest Coverage Ratio of -93.67. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | RDDT | ROKU |
|---|---|---|
| Current Ratio (MRQ) | 12.00 | 2.85 |
| Quick Ratio (MRQ) | 11.89 | 2.60 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.00 |
| Interest Coverage Ratio (TTM) | -- | -93.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
ROKU
0.00%
Entertainment Industry
- Max
- 2.54%
- Q3
- 1.29%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
ROKU 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)
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.
ROKU
0.00%
Entertainment Industry
- Max
- 82.30%
- Q3
- 45.76%
- Median
- 29.16%
- Q1
- 0.00%
- Min
- 0.00%
ROKU 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 | RDDT | ROKU |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
RDDT
203.10
Interactive Media & Services Industry
- Max
- 87.79
- Q3
- 54.33
- Median
- 25.46
- Q1
- 18.76
- Min
- 6.96
At 203.10, 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.
ROKU
--
Entertainment Industry
- Max
- 53.51
- Q3
- 45.31
- Median
- 33.16
- Q1
- 18.21
- Min
- 3.89
P/E Ratio data for ROKU is currently unavailable.
Price-to-Sales Ratio (TTM)
RDDT
26.34
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 26.34, 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.
ROKU
2.92
Entertainment Industry
- Max
- 12.81
- Q3
- 7.20
- Median
- 4.68
- Q1
- 3.32
- Min
- 0.79
In the lower quartile for the Entertainment industry, ROKU’s P/S Ratio of 2.92 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
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.
ROKU
4.98
Entertainment Industry
- Max
- 17.11
- Q3
- 8.38
- Median
- 5.24
- Q1
- 2.18
- Min
- 0.67
ROKU’s P/B Ratio of 4.98 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | RDDT | ROKU |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 203.10 | -- |
| Price-to-Sales Ratio (TTM) | 26.34 | 2.92 |
| Price-to-Book Ratio (MRQ) | 11.64 | 4.98 |
| Price-to-Free Cash Flow Ratio (TTM) | 110.72 | 32.86 |