Dayforce (NYSE:DAY – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Valuation and Earnings
This table compares Dayforce and Reddit”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dayforce | $1.89 billion | 5.91 | $18.10 million | ($0.94) | -74.44 |
| $2.20 billion | 13.00 | $529.72 million | $2.62 | 57.18 |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Dayforce and Reddit, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dayforce | 1 | 15 | 0 | 1 | 2.06 |
| 1 | 11 | 17 | 1 | 2.60 |
Dayforce presently has a consensus target price of $70.36, suggesting a potential upside of 0.55%. Reddit has a consensus target price of $238.78, suggesting a potential upside of 59.37%. Given Reddit’s stronger consensus rating and higher probable upside, analysts plainly believe Reddit is more favorable than Dayforce.
Profitability
This table compares Dayforce and Reddit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dayforce | -7.91% | 6.54% | 1.92% |
| 24.05% | 20.89% | 18.94% |
Risk and Volatility
Dayforce has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.
Summary
Reddit beats Dayforce on 12 of the 12 factors compared between the two stocks.
About Dayforce
Dayforce Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll and tax, workforce management, wallet, benefits, and talent intelligence functionalities; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides payroll and payroll-related services; and implementation and professional services. It sells its solutions through direct sales force and third-party channels. The company was formerly known as Ceridian HCM Holding Inc. and changed its name to Dayforce Inc. in February 2024. Dayforce Inc. was founded in 1992 and is headquartered in Minneapolis, Minnesota.
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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