Comprehensive Stock Comparison
Compare Reddit, Inc. (RDDT) vs Netflix, Inc. (NFLX) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | RDDT | 69.4% revenue growth vs NFLX's 15.9% |
| Value | NFLX | Lower P/E (26.4x vs 36.7x) |
| Quality / Margins | NFLX | 24.3% net margin vs RDDT's 24.1% |
| Stability / Safety | NFLX | Beta 0.78 vs RDDT's 2.05 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | RDDT | -11.0% vs NFLX's -16.5% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs RDDT's 16.4%, ROIC 29.8% vs 18.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Reddit operates a social media platform organized into thousands of topic-based communities called subreddits where users share content and discuss interests. It generates revenue primarily through advertising — accounting for over 90% of sales — with additional income from data licensing and premium subscriptions. Its key advantage is its massive, highly engaged user base that creates authentic, niche-specific content across virtually every imaginable topic.
Netflix is a global streaming entertainment service that offers original and licensed TV shows, movies, and documentaries. It generates revenue primarily through subscription fees — with three pricing tiers — and earns additional income from licensing its original content to other platforms. Its key advantage is its massive scale and data-driven content creation, which allows it to invest billions in programming that attracts and retains subscribers worldwide.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
RDDT leads in 2 of 6 categories (Financial Metrics, Total Returns). NFLX leads in 2 (Profitability & Efficiency, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
NFLX is the larger business by revenue, generating $45.2B annually — 20.5x RDDT's $2.2B. Profitability is closely matched — net margins range from 24.3% (NFLX) to 24.1% (RDDT). On growth, RDDT holds the edge at +69.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $2.2B | $45.2B |
| EBITDAEarnings before interest/tax | $458M | $30.1B |
| Net IncomeAfter-tax profit | $530M | $11.0B |
| Free Cash FlowCash after capex | $684M | $9.5B |
| Gross MarginGross profit ÷ Revenue | +91.2% | +48.5% |
| Operating MarginEBIT ÷ Revenue | +20.1% | +29.5% |
| Net MarginNet income ÷ Revenue | +24.1% | +24.3% |
| FCF MarginFCF ÷ Revenue | +31.1% | +20.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +69.7% | +17.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.2% | +31.1% |
Valuation Metrics
At 32.7x trailing earnings, NFLX trades at a 43% valuation discount to RDDT's 57.1x P/E. On an enterprise value basis, NFLX's 11.8x EV/EBITDA is more attractive than RDDT's 14.9x.
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Market CapShares × price | $7.7B | $350.4B |
| Enterprise ValueMkt cap + debt − cash | $6.8B | $355.9B |
| Trailing P/EPrice ÷ TTM EPS | 57.13x | 32.69x |
| Forward P/EPrice ÷ next-FY EPS est. | 36.66x | 26.43x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.99x |
| EV / EBITDAEnterprise value multiple | 14.86x | 11.83x |
| Price / SalesMarket cap ÷ Revenue | 3.51x | 7.76x |
| Price / BookPrice ÷ Book value/share | 10.33x | 13.41x |
| Price / FCFMarket cap ÷ FCF | 11.30x | 37.04x |
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $18 for RDDT. RDDT carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to NFLX's 0.54x.
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +18.1% | +41.3% |
| ROA (TTM)Return on assets | +16.4% | +19.8% |
| ROICReturn on invested capital | +18.4% | +29.8% |
| ROCEReturn on capital employed | +17.2% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.01x | 0.54x |
| Net DebtTotal debt minus cash | -$930M | $5.4B |
| Cash & Equiv.Liquid assets | $954M | $9.0B |
| Total DebtShort + long-term debt | $23M | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | — | 17.33x |
Total Returns (with DRIP)
A $10,000 investment in RDDT five years ago would be worth $29,673 today (with dividends reinvested), compared to $15,346 for NFLX. Over the past 12 months, RDDT leads with a -11.0% total return vs NFLX's -16.5%. The 3-year compound annual growth rate (CAGR) favors RDDT at 43.7% vs NFLX's 36.8% — a key indicator of consistent wealth creation.
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -38.1% | -9.1% |
| 1-Year ReturnPast 12 months | -11.0% | -16.5% |
| 3-Year ReturnCumulative with dividends | +196.7% | +156.0% |
| 5-Year ReturnCumulative with dividends | +196.7% | +53.5% |
| 10-Year ReturnCumulative with dividends | +196.7% | +772.4% |
| CAGR (3Y)Annualised 3-year return | +43.7% | +36.8% |
Risk & Volatility
NFLX is the less volatile stock with a 0.78 beta — it tends to amplify market swings less than RDDT's 2.05 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NFLX currently trades 61.7% from its 52-week high vs RDDT's 52.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.05x | 0.78x |
| 52-Week HighHighest price in past year | $282.95 | $134.12 |
| 52-Week LowLowest price in past year | $79.75 | $75.01 |
| % of 52W HighCurrent price vs 52-week peak | +52.9% | +61.7% |
| RSI (14)Momentum oscillator 0–100 | 33.4 | 40.6 |
| Avg Volume (50D)Average daily shares traded | 4.8M | 41.3M |
Analyst Outlook
Wall Street rates RDDT as "Buy" and NFLX as "Buy". Consensus price targets imply 65.9% upside for RDDT (target: $248) vs 41.8% for NFLX (target: $117).
| Metric | RDDTReddit, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $248.26 | $117.25 |
| # AnalystsCovering analysts | 25 | 97 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 24 | Feb 26 | Change |
|---|---|---|---|
| Reddit, Inc. (RDDT) | 100 | 351.21 | +251.2% |
| Netflix, Inc. (NFLX) | 100 | 134.72 | +34.7% |
Reddit, Inc. (RDDT) returned +197% over 5 years vs Netflix, Inc. (NFLX)'s +53%. A $10,000 investment in RDDT 5 years ago would be worth $29,673 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Reddit, Inc. (RDDT) | $229M | $2.2B | +862.2% |
| Netflix, Inc. (NFLX) | $8.8B | $45.2B | +411.7% |
Netflix, Inc.'s revenue grew from $8.8B (2016) to $45.2B (2025) — a 19.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Reddit, Inc. (RDDT) | -25.9% | 24.1% | +193.0% |
| Netflix, Inc. (NFLX) | 2.1% | 24.3% | +1049.7% |
Netflix, Inc.'s net margin went from 2% (2016) to 24% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 153.6 | 37.1 | -75.8% |
Netflix, Inc. has traded in a 30x–154x P/E range over 9 years; current trailing P/E is ~33x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Reddit, Inc. (RDDT) | -0.36 | 2.62 | +827.8% |
| Netflix, Inc. (NFLX) | 0.04 | 2.53 | +5783.7% |
Netflix, Inc.'s EPS grew from $0.04 (2016) to $2.53 (2025) — a 57% CAGR.
Chart 6Free Cash Flow — 5 Years
Reddit, Inc. generated $684M FCF in 2025 (+616% vs 2021). Netflix, Inc. generated $9B FCF in 2025 (+7269% vs 2021).
RDDT vs NFLX: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RDDT or NFLX a better buy right now?
Netflix, Inc. (NFLX) offers the better valuation at 32.7x trailing P/E (26.4x 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.
02Which has the better valuation — RDDT or NFLX?
On trailing P/E, Netflix, Inc. (NFLX) is the cheapest at 32.7x versus Reddit, Inc. at 57.1x. On forward P/E, Netflix, Inc. is actually cheaper at 26.4x.
03Which is the better long-term investment — RDDT or NFLX?
Over the past 5 years, Reddit, Inc. (RDDT) delivered a total return of +196.7%, compared to +53.5% for Netflix, Inc. (NFLX). 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: NFLX returned +772.4% versus RDDT's +196.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RDDT or NFLX?
By beta (market sensitivity over 5 years), Netflix, Inc. (NFLX) is the lower-risk stock at 0.78β versus Reddit, Inc.'s 2.05β — meaning RDDT is approximately 164% more volatile than NFLX relative to the S&P 500. On balance sheet safety, Reddit, Inc. (RDDT) carries a lower debt/equity ratio of 1% versus 54% for Netflix, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — RDDT or NFLX?
Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus 24.1% for Reddit, Inc. — meaning it keeps 24.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NFLX leads at 29.5% versus 20.1% for RDDT. 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.
06Is RDDT or NFLX more undervalued right now?
On forward earnings alone, Netflix, Inc. (NFLX) trades at 26.4x forward P/E versus 36.7x for Reddit, Inc. — 10.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RDDT: 65.9% to $248.26.
07Which pays a better dividend — RDDT or NFLX?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is RDDT or NFLX better for a retirement portfolio?
For long-horizon retirement investors, Netflix, Inc. (NFLX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), +772.4% 10Y return). 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 (NFLX: +772.4%, 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.
09What are the main differences between RDDT and NFLX?
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. 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.
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