Compare Reddit, Inc. (RDDT) vs Hello Group Inc. (MOMO) Stock

Hello Group Inc. (MOMO) offers the better valuation at 8.1x trailing P/E (1.1x forward), making it the more compelling value choice. Analysts rate Reddit, Inc. (RDDT) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Hello Group Inc. (MOMO) is the cheapest at 8.1x versus Reddit, Inc. at 57.1x. On forward P/E, Hello Group Inc. is actually cheaper at 1.1x.

Over the past 5 years, Reddit, Inc. (RDDT) delivered a total return of +196.7%, compared to -40.4% for Hello Group Inc. (MOMO). A $10,000 investment in RDDT five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: RDDT returned +196.7% versus MOMO's -9.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Hello Group Inc. (MOMO) is the lower-risk stock at 0.46β versus Reddit, Inc.'s 2.05β — meaning RDDT is approximately 346% more volatile than MOMO relative to the S&P 500. On balance sheet safety, Reddit, Inc. (RDDT) carries a lower debt/equity ratio of 1% versus 40% for Hello Group Inc. — giving it more financial flexibility in a downturn.

Reddit, Inc. (RDDT) is the more profitable company, earning 24.1% net margin versus 9.8% for Hello Group Inc. — meaning it keeps 24.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RDDT leads at 20.1% versus 14.5% for MOMO. At the gross margin level — before operating expenses — RDDT leads at 91.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Hello Group Inc. (MOMO) trades at 1.1x forward P/E versus 36.7x for Reddit, Inc. — 35.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RDDT: 65.9% to $248.26.

In this comparison, MOMO (8.5% yield) pays a dividend. RDDT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Hello Group Inc. (MOMO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.46), 8.5% yield). Reddit, Inc. (RDDT) carries a higher beta of 2.05 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MOMO: -9.5%, RDDT: +196.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: RDDT is a small-cap quality compounder stock; MOMO is a small-cap deep-value stock. MOMO pays a dividend while RDDT does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.