Comprehensive Stock Comparison
Compare Zhihu Inc. (ZH) vs Reddit, Inc. (RDDT) 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 ZH's -13.1% |
| Quality / Margins | RDDT | 24.1% net margin vs ZH's 3.5% |
| Stability / Safety | ZH | Beta 0.79 vs RDDT's 2.05, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | RDDT | -11.0% vs ZH's -36.5% |
| Efficiency (ROA) | RDDT | 16.4% ROA vs ZH's 1.9%, ROIC 18.4% vs -25.6% |
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
Zhihu operates China's leading question-and-answer platform where users share knowledge and expertise across diverse topics. It generates revenue primarily through online advertising (~60% of sales) and paid membership services, supplemented by content-commerce solutions and vocational training. Its competitive moat stems from its massive, high-quality user-generated content library and strong network effects that reinforce its position as China's go-to knowledge-sharing community.
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.
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 3 of 6 categories (Financial Metrics, Profitability & Efficiency). ZH leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
ZH and RDDT operate at a comparable scale, with $3.0B and $2.2B in trailing revenue. RDDT is the more profitable business, keeping 24.1% of every revenue dollar as net income compared to ZH's 3.5%. On growth, RDDT holds the edge at +69.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $2.2B |
| EBITDAEarnings before interest/tax | -$148M | $458M |
| Net IncomeAfter-tax profit | $103M | $530M |
| Free Cash FlowCash after capex | $0 | $684M |
| Gross MarginGross profit ÷ Revenue | +62.2% | +91.2% |
| Operating MarginEBIT ÷ Revenue | -7.8% | +20.1% |
| Net MarginNet income ÷ Revenue | +3.5% | +24.1% |
| FCF MarginFCF ÷ Revenue | -7.8% | +31.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -20.3% | +69.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -4.2% | +2.2% |
Valuation Metrics
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| Market CapShares × price | $53M | $7.7B |
| Enterprise ValueMkt cap + debt − cash | -$529M | $6.8B |
| Trailing P/EPrice ÷ TTM EPS | -12.41x | 57.13x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 36.66x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 14.86x |
| Price / SalesMarket cap ÷ Revenue | 0.10x | 3.51x |
| Price / BookPrice ÷ Book value/share | 0.51x | 10.33x |
| Price / FCFMarket cap ÷ FCF | — | 11.30x |
Profitability & Efficiency
RDDT delivers a 18.1% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $2 for ZH. ZH carries lower financial leverage with a 0.00x debt-to-equity ratio, signaling a more conservative balance sheet compared to RDDT's 0.01x. On the Piotroski fundamental quality scale (0–9), RDDT scores 7/9 vs ZH's 6/9, reflecting strong financial health.
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +2.5% | +18.1% |
| ROA (TTM)Return on assets | +1.9% | +16.4% |
| ROICReturn on invested capital | -25.6% | +18.4% |
| ROCEReturn on capital employed | -10.8% | +17.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.00x | 0.01x |
| Net DebtTotal debt minus cash | -$4.0B | -$930M |
| Cash & Equiv.Liquid assets | $4.0B | $954M |
| Total DebtShort + long-term debt | $19M | $23M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in RDDT five years ago would be worth $29,673 today (with dividends reinvested), compared to $673 for ZH. Over the past 12 months, RDDT leads with a -11.0% total return vs ZH's -36.5%. The 3-year compound annual growth rate (CAGR) favors RDDT at 43.7% vs ZH's -27.3% — a key indicator of consistent wealth creation.
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +3.0% | -38.1% |
| 1-Year ReturnPast 12 months | -36.5% | -11.0% |
| 3-Year ReturnCumulative with dividends | -61.6% | +196.7% |
| 5-Year ReturnCumulative with dividends | -93.3% | +196.7% |
| 10-Year ReturnCumulative with dividends | -93.3% | +196.7% |
| CAGR (3Y)Annualised 3-year return | -27.3% | +43.7% |
Risk & Volatility
ZH is the less volatile stock with a 0.79 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. ZH currently trades 58.4% from its 52-week high vs RDDT's 52.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.79x | 2.05x |
| 52-Week HighHighest price in past year | $5.87 | $282.95 |
| 52-Week LowLowest price in past year | $3.23 | $79.75 |
| % of 52W HighCurrent price vs 52-week peak | +58.4% | +52.9% |
| RSI (14)Momentum oscillator 0–100 | 43.5 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 322K | 4.8M |
Analyst Outlook
Wall Street rates ZH as "Buy" and RDDT as "Buy".
| Metric | ZHZhihu Inc. | RDDTReddit, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | — | $248.26 |
| # AnalystsCovering analysts | 8 | 25 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +100.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 24 | Feb 26 | Change |
|---|---|---|---|
| Zhihu Inc. (ZH) | 100 | 83.57 | -16.4% |
| Reddit, Inc. (RDDT) | 91.14 | 351.21 | +285.4% |
Reddit, Inc. (RDDT) returned +197% over 5 years vs Zhihu Inc. (ZH)'s -93%. A $10,000 investment in RDDT 5 years ago would be worth $29,673 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Zhihu Inc. (ZH) | $669M | $3.6B | +445.8% |
| Reddit, Inc. (RDDT) | $229M | $2.2B | +862.2% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Zhihu Inc. (ZH) | -149.8% | -4.8% | +96.8% |
| Reddit, Inc. (RDDT) | -25.9% | 24.1% | +193.0% |
Chart 4EPS Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Zhihu Inc. (ZH) | -10.12 | -1.89 | +81.3% |
| Reddit, Inc. (RDDT) | -0.36 | 2.62 | +827.8% |
Chart 5Free Cash Flow — 5 Years
Zhihu Inc. generated $-283M FCF in 2024 (+37% vs 2021). Reddit, Inc. generated $684M FCF in 2025 (+616% vs 2021).
ZH vs RDDT: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is ZH or RDDT a better buy right now?
Reddit, Inc. (RDDT) offers the better valuation at 57.1x trailing P/E (36.7x forward), making it the more compelling value choice. Analysts rate Zhihu Inc. (ZH) a "Buy" — based on 8 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 is the better long-term investment — ZH or RDDT?
Over the past 5 years, Reddit, Inc. (RDDT) delivered a total return of +196.7%, compared to -93.3% for Zhihu Inc. (ZH). 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 ZH's -93.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ZH or RDDT?
By beta (market sensitivity over 5 years), Zhihu Inc. (ZH) is the lower-risk stock at 0.79β versus Reddit, Inc.'s 2.05β — meaning RDDT is approximately 160% more volatile than ZH relative to the S&P 500. On balance sheet safety, Zhihu Inc. (ZH) carries a lower debt/equity ratio of 0% versus 1% for Reddit, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ZH or RDDT?
Reddit, Inc. (RDDT) is the more profitable company, earning 24.1% net margin versus -4.8% for Zhihu 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 -13.4% for ZH. 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.
05Which pays a better dividend — ZH or RDDT?
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.
06Is ZH or RDDT better for a retirement portfolio?
For long-horizon retirement investors, Zhihu Inc. (ZH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.79)). 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 (ZH: -93.3%, 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.
07What are the main differences between ZH and RDDT?
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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- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 34%
- Net Margin > 14%