Reviewing EverQuote (NASDAQ:EVER) and Reddit (NYSE:RDDT)

EverQuote (NASDAQ:EVER – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk & Volatility

EverQuote has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Reddit has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.

Valuation & Earnings

This table compares EverQuote and Reddit”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EverQuote $692.52 million 1.04 $99.31 million $3.08 6.51
Reddit $2.20 billion 12.47 $529.72 million $4.30 33.20

Reddit has higher revenue and earnings than EverQuote. EverQuote 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 summary of current ratings for EverQuote and Reddit, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EverQuote 1 1 6 0 2.62
Reddit 0 10 17 2 2.72

EverQuote currently has a consensus price target of $28.17, suggesting a potential upside of 40.41%. Reddit has a consensus price target of $219.29, suggesting a potential upside of 53.62%. Given Reddit’s stronger consensus rating and higher possible upside, analysts clearly believe Reddit is more favorable than EverQuote.

Profitability

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

Net Margins Return on Equity Return on Assets
EverQuote 15.16% 50.29% 36.69%
Reddit 31.35% 29.02% 26.32%

Institutional and Insider Ownership

91.5% of EverQuote shares are held by institutional investors. 23.7% of EverQuote shares are held by company insiders. Comparatively, 28.5% of Reddit shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

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

About EverQuote

(Get Free Report)

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

About Reddit

(Get Free Report)

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.

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