EverQuote (NASDAQ:EVER) vs. Reddit (NYSE:RDDT) Financial Survey
by Doug Wharley · The Cerbat GemReddit (NYSE:RDDT – Get Free Report) and EverQuote (NASDAQ:EVER – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
91.5% of EverQuote shares are owned by institutional investors. 28.5% of Reddit shares are owned by insiders. Comparatively, 23.7% of EverQuote shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Reddit and EverQuote’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 31.35% | 29.02% | 26.32% | |
| EverQuote | 15.16% | 50.29% | 36.69% |
Analyst Ratings
This is a summary of current ratings and price targets for Reddit and EverQuote, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 0 | 12 | 17 | 2 | 2.68 | |
| EverQuote | 1 | 1 | 6 | 0 | 2.62 |
Reddit presently has a consensus target price of $219.29, indicating a potential upside of 43.53%. EverQuote has a consensus target price of $28.17, indicating a potential upside of 55.96%. Given EverQuote’s higher probable upside, analysts clearly believe EverQuote is more favorable than Reddit.
Earnings and Valuation
This table compares Reddit and EverQuote”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $2.20 billion | 13.35 | $529.72 million | $4.30 | 35.53 | |
| EverQuote | $692.52 million | 0.94 | $99.31 million | $3.08 | 5.86 |
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.
Volatility & Risk
Reddit has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Summary
Reddit beats EverQuote 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 EverQuote
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.