Critical Survey: Diebold Nixdorf (NYSE:DBD) and Reddit (NYSE:RDDT)

Diebold Nixdorf (NYSE:DBD) and Reddit (NYSE:RDDT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Diebold Nixdorf and Reddit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diebold Nixdorf	0	0	3	0	3.00
Reddit	0	11	17	1	2.66

Diebold Nixdorf currently has a consensus price target of $100.00, indicating a potential upside of 12.69%. Reddit has a consensus price target of $237.46, indicating a potential upside of 45.32%. Given Reddit’s higher possible upside, analysts clearly believe Reddit is more favorable than Diebold Nixdorf.

Risk & Volatility

Diebold Nixdorf has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500.

Earnings & Valuation

This table compares Diebold Nixdorf and Reddit”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diebold Nixdorf	$3.81 billion	0.81	$94.60 million	$2.59	34.26
Reddit	$2.20 billion	14.17	$529.72 million	$2.62	62.37

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diebold Nixdorf	2.49%	16.33%	4.71%
Reddit	24.05%	20.89%	18.94%

Insider & Institutional Ownership

97.0% of Diebold Nixdorf shares are owned by institutional investors. 1.1% of Diebold Nixdorf shares are owned by company insiders. Comparatively, 34.3% of Reddit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Reddit beats Diebold Nixdorf on 12 of the 15 factors compared between the two stocks.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; modular and integrated point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems, as well as ordering kiosks. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.

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.