RDDT vs. WMG: Reddit vs. Warner Music Stock Comparison
How do Reddit (RDDT) and Warner Music (WMG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Reddit (RDDT) and Warner Music (WMG) both fall under the Media & Entertainment industry group, but RDDT is classified in Interactive Media & Services while WMG is classified in Entertainment.
| Profile Item | RDDT | WMG |
|---|---|---|
| Name | Reddit Inc. Class A Common Stock | Warner Music Group Corp. |
| Country/Region | United States | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Interactive Media & Services | Entertainment |
| GICS Sub-Industry | Interactive Media & Services | Movies & Entertainment |
| Market Capitalization | 18.36 billion USD | 16.37 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | March 21, 2024 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Total Return (1Y) | -50.09% | 6.98% |
| Total Return (3Y, Annualized) | -- | 1.34% |
| Total Return (5Y, Annualized) | -- | -6.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Volatility (1Y, Annualized) | 74.81% | 35.24% |
| Beta (5Y) | 2.17 | 1.31 |
| Max Drawdown (5Y) | -66.40% | -53.17% |
| Avg. Volume (3M) | 6.23M | 2.05M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Sharpe Ratio (1Y) | -0.73 | 0.08 |
| Sortino Ratio (1Y) | -0.97 | 0.11 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Warner Music (WMG) at 70.07% is the standout with ROE above its industry range; Reddit (RDDT) at 32.03% also sits in the top quartile.
RDDT
Media & Entertainment industry group
32.03%
- Max
- 49.92%
- RDDT
- 32.03%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
WMG
Media & Entertainment industry group
70.07%
- WMG
- 70.07%
- Max
- 49.92%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
Net Margin (TTM)
Reddit (RDDT) at 32.11% retains a top-quartile share of revenue as profit, ahead of Warner Music (WMG) at 9.20%, which keeps about the industry-typical share.
RDDT
Media & Entertainment industry group
32.11%
- Max
- 32.91%
- RDDT
- 32.11%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
WMG
Media & Entertainment industry group
9.20%
- Max
- 32.91%
- Q3
- 11.75%
- WMG
- 9.20%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
Operating Margin (TTM)
Reddit (RDDT) at 29.23% operates in the top operating margin quartile, ahead of Warner Music (WMG) at 16.74%, which runs around its industry’s norm.
RDDT
Media & Entertainment industry group
29.23%
- Max
- 40.16%
- RDDT
- 29.23%
- Q3
- 18.72%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
WMG
Media & Entertainment industry group
16.74%
- Max
- 40.16%
- Q3
- 18.72%
- WMG
- 16.74%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
Profitability Metrics
| Metric | RDDT | WMG |
|---|---|---|
| ROE (TTM) | 32.03% | 70.07% |
| ROA (TTM) | 16.60% | 7.65% |
| Net Margin (TTM) | 32.11% | 9.20% |
| Operating Margin (TTM) | 29.23% | 16.74% |
| Gross Margin (TTM) | 91.55% | 45.77% |
Growth
Revenue Growth
Reddit (RDDT) at 69.40% clears its industry range for revenue growth, far stronger top-line momentum than Warner Music (WMG) at 4.37%, which is closer to a typical peer reading.
EPS Growth
Only one side can be read here: Warner Music (WMG) reports EPS growth of -16.87%, ranked against its industry; Reddit (RDDT) has no EPS growth figure this period.
Growth Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Revenue Growth (YoY) | 69.40% | 4.37% |
| Revenue Growth (3Y CAGR) | 48.93% | 4.25% |
| EPS Growth (YoY) | -- | -16.87% |
| EPS Growth (3Y CAGR) | -- | -13.33% |
Financial Strength
Current Ratio (MRQ)
Reddit (RDDT) at 10.80 carries current ratio above its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
RDDT
Media & Entertainment industry group
10.80
- RDDT
- 10.80
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- Q1
- 0.95
- Min
- 0.28
WMG
Media & Entertainment industry group
0.73
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- Q1
- 0.95
- WMG
- 0.73
- Min
- 0.28
Debt / Equity (MRQ)
Reddit (RDDT) at 0.01 keeps leverage in the lower quartile, while Warner Music (WMG) at 4.53 is above its industry debt-to-equity ratio range.
RDDT
Media & Entertainment industry group
0.01
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- RDDT
- 0.01
- Min
- 0.00
WMG
Media & Entertainment industry group
4.53
- WMG
- 4.53
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- Min
- 0.00
Financial Strength Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Current Ratio (MRQ) | 10.80 | 0.73 |
| Debt / Equity (MRQ) | 0.01 | 4.53 |
| Net Debt / EBITDA | -3.25 | 2.57 |
Dividends
Dividend Yield (TTM)
Reddit (RDDT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a yield of 2.38%, ranking against industry peers normally.
RDDT
Media & Entertainment industry group
0.00%
- Max
- 1.33%
- Q3
- 0.65%
- RDDT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
2.38%
- WMG
- 2.38%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Reddit (RDDT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a payout of 60.80%, ranking against industry peers normally.
RDDT
Media & Entertainment industry group
0.00%
- Max
- 71.43%
- Q3
- 28.98%
- RDDT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
60.80%
- Max
- 71.43%
- WMG
- 60.80%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | RDDT | WMG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.38% |
| Dividend Payout Ratio (TTM) | 0.00% | 60.80% |
Valuation
P/E Ratio (TTM)
Both Reddit (RDDT) at 19.41 and Warner Music (WMG) at 25.04 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
RDDT
Media & Entertainment industry group
19.41
- Max
- 51.21
- Q3
- 28.90
- RDDT
- 19.41
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
WMG
Media & Entertainment industry group
25.04
- Max
- 51.21
- Q3
- 28.90
- WMG
- 25.04
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
P/S Ratio (TTM)
Warner Music (WMG) at 2.24 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.
RDDT
Media & Entertainment industry group
5.94
- Max
- 7.43
- RDDT
- 5.94
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
WMG
Media & Entertainment industry group
2.24
- Max
- 7.43
- Q3
- 3.82
- WMG
- 2.24
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
P/B Ratio (MRQ)
Reddit (RDDT) at 5.13 sits near its industry’s typical P/B ratio, while Warner Music (WMG) at 19.17 prices above its benchmark range — WMG looks rich relative to book.
RDDT
Media & Entertainment industry group
5.13
- Max
- 11.45
- Q3
- 5.30
- RDDT
- 5.13
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
WMG
Media & Entertainment industry group
19.17
- WMG
- 19.17
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
Valuation Metrics
| Metric | RDDT | WMG |
|---|---|---|
| P/E Ratio (TTM) | 19.41 | 25.04 |
| P/S Ratio (TTM) | 5.94 | 2.24 |
| P/B Ratio (MRQ) | 5.13 | 19.17 |
| Free Cash Flow Yield (TTM) | 4.42% | 2.33% |