Waystar (NASDAQ:WAY – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Valuation & Earnings
This table compares Waystar and Reddit”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waystar | $1.16 billion | 3.19 | $112.09 million | $0.67 | 28.67 |
| $2.20 billion | 12.86 | $529.72 million | $3.50 | 42.03 |
Analyst Recommendations
This is a breakdown of recent recommendations for Waystar and Reddit, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 0 | 3 | 17 | 3 | 3.00 |
| 0 | 11 | 18 | 1 | 2.67 |
Waystar presently has a consensus target price of $35.62, suggesting a potential upside of 85.42%. Reddit has a consensus target price of $228.61, suggesting a potential upside of 55.39%. Given Waystar’s stronger consensus rating and higher possible upside, equities analysts plainly believe Waystar is more favorable than Reddit.
Profitability
This table compares Waystar and Reddit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 10.90% | 6.99% | 4.72% |
| 28.60% | 25.48% | 23.14% |
Volatility & Risk
Waystar has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Reddit has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
Summary
Reddit beats Waystar on 10 of the 13 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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.
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