Seek Returns

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.

Company profile comparison for Reddit (RDDT) and Warner Music (WMG)
Profile ItemRDDTWMG
NameReddit Inc. Class A Common StockWarner Music Group Corp.
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryInteractive Media & ServicesEntertainment
GICS Sub-IndustryInteractive Media & ServicesMovies & Entertainment
Market Capitalization18.36 billion USD16.37 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateMarch 21, 2024June 3, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

RDDT
WMG
GSPC
Loading price history…
Reddit (RDDT) vs. Warner Music (WMG), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Reddit (RDDT) and Warner Music (WMG). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Reddit (RDDT) and Warner Music (WMG). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
Total Return (1Y)-50.09%6.98%
Total Return (3Y, Annualized)--1.34%
Total Return (5Y, Annualized)---6.02%

Risk Profile

Drawdown History

RDDT
WMG
GSPC
Loading price history…
Reddit (RDDT) vs. Warner Music (WMG), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Reddit (RDDT) and Warner Music (WMG). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
Volatility (1Y, Annualized)74.81%35.24%
Beta (5Y)2.171.31
Max Drawdown (5Y)-66.40%-53.17%
Avg. Volume (3M)6.23M2.05M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
RDDT and WMG are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
Sharpe Ratio (1Y)-0.730.08
Sortino Ratio (1Y)-0.970.11

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%
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their ROE against the Media & Entertainment industry group benchmark.

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%
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their net margin against the Media & Entertainment industry group benchmark.

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%
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
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.

Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their Revenue Growth across different time periods.

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.

Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
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
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

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
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
Current Ratio (MRQ)10.800.73
Debt / Equity (MRQ)0.014.53
Net Debt / EBITDA-3.252.57

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%
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

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%
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
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
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

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
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

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
Loading chart…
Reddit (RDDT) vs. Warner Music (WMG): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Reddit (RDDT) and Warner Music (WMG)
MetricRDDTWMG
P/E Ratio (TTM)19.4125.04
P/S Ratio (TTM)5.942.24
P/B Ratio (MRQ)5.1319.17
Free Cash Flow Yield (TTM)4.42%2.33%