Critical Comparison: Reddit (NYSE:RDDT) and Playtika (NASDAQ:PLTK)

Reddit (NYSE:RDDT) and Playtika (NASDAQ:PLTK) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Reddit and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reddit	N/A	N/A	N/A
Playtika	9.15%	-81.85%	9.16%

Analyst Ratings

This is a summary of current ratings and recommmendations for Reddit and Playtika, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	6	8	1	2.56
Playtika	1	5	4	0	2.30

Playtika has a consensus price target of $10.43, suggesting a potential upside of 18.33%. Given Playtika’s higher probable upside, analysts clearly believe Playtika is more favorable than Reddit.

Valuation & Earnings

This table compares Reddit and Playtika’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$804.03 million	9.91	N/A	N/A	N/A
Playtika	$2.57 billion	1.28	$235.00 million	$0.64	13.86

Playtika has higher revenue and earnings than Reddit.

Institutional & Insider Ownership

11.9% of Playtika shares are owned by institutional investors. 4.2% of Playtika shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Playtika beats Reddit on 6 of the 11 factors compared between the two stocks.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.