Getty Images (NYSE:GETY) vs. Reddit (NYSE:RDDT) Critical Survey

Getty Images (NYSE:GETY) and Reddit (NYSE:RDDT) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Risk and Volatility

Getty Images has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Earnings & Valuation

This table compares Getty Images and Reddit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Images	$978.00 million	0.01	-$206.12 million	($0.39)	-0.05
Reddit	$2.20 billion	8.24	$529.72 million	$4.90	19.25

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

Analyst Ratings

This is a breakdown of current recommendations for Getty Images and Reddit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Images	2	3	1	0	1.83
Reddit	0	15	14	2	2.58

Getty Images presently has a consensus target price of $3.92, indicating a potential upside of 20,236.79%. Reddit has a consensus target price of $180.91, indicating a potential upside of 91.76%. Given Getty Images’ higher probable upside, equities research analysts plainly believe Getty Images is more favorable than Reddit.

Insider & Institutional Ownership

45.8% of Getty Images shares are owned by institutional investors. 9.3% of Getty Images shares are owned by company insiders. Comparatively, 28.5% of Reddit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getty Images	-16.24%	-26.82%	-5.25%
Reddit	31.35%	29.02%	26.32%

Summary

Reddit beats Getty Images on 12 of the 15 factors compared between the two stocks.

About Getty Images

Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.

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.