Reddit (NYSE:RDDT) & Yext (NYSE:YEXT) Financial Review

Yext (NYSE:YEXT) and Reddit (NYSE:RDDT) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Institutional and Insider Ownership

71.0% of Yext shares are held by institutional investors. 8.4% of Yext shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Yext and Reddit”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$408.97 million	2.06	-$2.63 million	($0.15)	-44.03
Reddit	$1.30 billion	22.20	-$484.28 million	($7.73)	-20.64

Yext has higher earnings, but lower revenue than Reddit. Yext is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Yext and Reddit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	2	2	0	2.50
Reddit	1	9	11	1	2.55

Yext presently has a consensus price target of $8.75, suggesting a potential upside of 32.48%. Reddit has a consensus price target of $175.95, suggesting a potential upside of 10.27%. Given Yext’s higher probable upside, equities research analysts plainly believe Yext is more favorable than Reddit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yext	-4.64%	-11.10%	-3.49%
Reddit	-37.25%	-24.71%	-22.52%

Summary

Yext beats Reddit on 8 of the 14 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.