Reddit (NYSE:RDDT) and Getty Images (NYSE:GETY) Head-To-Head Analysis

Reddit (NYSE:RDDT) and Getty Images (NYSE:GETY) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Valuation and Earnings

This table compares Reddit and Getty Images”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$3.09 billion	5.92	$529.72 million	$4.90	19.41
Getty Images	$978.00 million	0.01	-$206.12 million	($0.39)	-0.05

Reddit has higher revenue and earnings than Getty Images. Getty Images is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Reddit and Getty Images, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	0	15	14	2	2.58
Getty Images	2	3	1	0	1.83

Reddit presently has a consensus price target of $180.91, indicating a potential upside of 90.20%. Getty Images has a consensus price target of $3.92, indicating a potential upside of 20,236.79%. Given Getty Images’ higher possible upside, analysts clearly believe Getty Images is more favorable than Reddit.

Insider & Institutional Ownership

45.8% of Getty Images shares are held by institutional investors. 28.5% of Reddit shares are held by insiders. Comparatively, 9.3% of Getty Images shares are held 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 Getty Images’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reddit	32.10%	30.57%	27.70%
Getty Images	-16.24%	-26.82%	-5.25%

Volatility and Risk

Reddit has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500. Comparatively, Getty Images has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Summary

Reddit beats Getty Images on 13 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 Getty Images

Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.