Head to Head Survey: MultiSensor AI (NASDAQ:MSAI) & Reddit (NYSE:RDDT)
by Michael Walen · The Markets DailyReddit (NYSE:RDDT – Get Free Report) and MultiSensor AI (NASDAQ:MSAI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a summary of recent recommendations for Reddit and MultiSensor AI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 0 | 12 | 19 | 0 | 2.61 | |
| MultiSensor AI | 1 | 1 | 0 | 1 | 2.33 |
Reddit currently has a consensus price target of $232.48, indicating a potential upside of 36.45%. MultiSensor AI has a consensus price target of $120.00, indicating a potential upside of 2,198.85%. Given MultiSensor AI’s higher possible upside, analysts clearly believe MultiSensor AI is more favorable than Reddit.
Institutional and Insider Ownership
82.3% of MultiSensor AI shares are owned by institutional investors. 28.5% of Reddit shares are owned by insiders. Comparatively, 50.8% of MultiSensor AI shares are owned by 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.
Profitability
This table compares Reddit and MultiSensor AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 28.60% | 25.48% | 23.14% | |
| MultiSensor AI | -162.60% | -48.87% | -41.13% |
Risk and Volatility
Reddit has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, MultiSensor AI has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.
Earnings and Valuation
This table compares Reddit and MultiSensor AI”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $2.20 billion | 14.89 | $529.72 million | $3.50 | 48.68 | |
| MultiSensor AI | $6.00 million | 1.76 | -$11.71 million | ($8.43) | -0.62 |
Reddit has higher revenue and earnings than MultiSensor AI. MultiSensor AI is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.
Summary
Reddit beats MultiSensor AI on 11 of the 15 factors compared between the two stocks.
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.
About MultiSensor AI
MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.