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

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

Company Profile

SymbolRDDTV
Company NameReddit, Inc.Visa Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesFinancials
GICS IndustryInteractive Media & ServicesFinancial Services
Market Capitalization40.87 billion USD667.55 billion USD
ExchangeNYSENYSE
Listing DateMarch 21, 2024March 19, 2008
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of RDDT and V 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.

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

Historical Performance at a Glance

SymbolRDDTV
5-Day Price Return-10.31%-0.45%
13-Week Price Return102.21%-6.52%
26-Week Price Return6.55%-3.29%
52-Week Price Return301.71%29.07%
Month-to-Date Return35.98%-0.45%
Year-to-Date Return33.61%8.82%
10-Day Avg. Volume7.13M5.74M
3-Month Avg. Volume8.08M6.27M
3-Month Volatility65.74%21.27%
Beta2.060.92

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.

V

52.65%

Financial Services Industry

Max
40.58%
Q3
20.06%
Median
10.67%
Q1
4.19%
Min
-10.31%

V’s Return on Equity of 52.65% is exceptionally high, placing it well beyond the typical range for the Financial Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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

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.

V

52.16%

Financial Services Industry

Max
52.86%
Q3
25.58%
Median
12.23%
Q1
6.64%
Min
-9.92%

A Net Profit Margin of 52.16% places V in the upper quartile for the Financial Services industry, signifying strong profitability and more effective cost management than most of its peers.

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

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.

V

62.21%

Financial Services Industry

Max
77.28%
Q3
37.68%
Median
18.17%
Q1
9.27%
Min
-8.19%

An Operating Profit Margin of 62.21% places V in the upper quartile for the Financial Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolRDDTV
Return on Equity (TTM)9.93%52.65%
Return on Assets (TTM)9.04%21.39%
Net Profit Margin (TTM)12.97%52.16%
Operating Profit Margin (TTM)7.87%62.21%
Gross Profit Margin (TTM)91.04%80.23%

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.

V

1.12

Financial Services Industry

Max
4.58
Q3
2.59
Median
1.33
Q1
0.69
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

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

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.

V

0.65

Financial Services Industry

Max
4.96
Q3
2.10
Median
0.57
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

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

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.

V

24.71

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

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

Financial Strength at a Glance

SymbolRDDTV
Current Ratio (MRQ)12.001.12
Quick Ratio (MRQ)11.891.06
Debt-to-Equity Ratio (MRQ)0.000.65
Interest Coverage Ratio (TTM)--24.71

Growth

Revenue Growth

RDDT vs. V: 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

RDDT vs. V: 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)

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.

V

0.68%

Financial Services Industry

Max
8.18%
Q3
3.60%
Median
1.56%
Q1
0.00%
Min
0.00%

V’s Dividend Yield of 0.68% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

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

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.

V

22.33%

Financial Services Industry

Max
155.56%
Q3
63.71%
Median
18.08%
Q1
0.00%
Min
0.00%

V’s Dividend Payout Ratio of 22.33% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolRDDTV
Dividend Yield (TTM)0.00%0.68%
Dividend Payout Ratio (TTM)0.00%22.33%

Valuation

Price-to-Earnings Ratio (TTM)

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.

V

32.82

Financial Services Industry

Max
63.23
Q3
32.10
Median
14.41
Q1
10.81
Min
0.37

A P/E Ratio of 32.82 places V in the upper quartile for the Financial Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

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.

V

17.12

Financial Services Industry

Max
11.16
Q3
5.45
Median
2.61
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

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

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.

V

17.81

Financial Services Industry

Max
7.09
Q3
3.79
Median
1.46
Q1
0.83
Min
0.04

At 17.81, V’s P/B Ratio is at an extreme premium to the Financial Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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

Valuation at a Glance

SymbolRDDTV
Price-to-Earnings Ratio (TTM)188.9132.82
Price-to-Sales Ratio (TTM)24.5017.12
Price-to-Book Ratio (MRQ)11.6417.81
Price-to-Free Cash Flow Ratio (TTM)102.9830.15