COMPARE · Reviewed August 3, 2026
RDDT vs YELP
Verdict: Side-by-side breakdown using the Bull Rankings model. RDDT scored 69.9, YELP scored 80.6 — YELP leads.
Compare another set
Different reporting periods. RDDT's fundamentals are as of June 2026, but YELP's are as of March 2026 — a 3-month gap. Growth, margin and valuation figures below therefore describe different windows and aren't strictly like-for-like.
RDDT
Reddit, Inc.
69.9
$160.00 · $30.8B
fundamentals as of
Score gap
10.7
YELP leads
YELP
Yelp Inc.
80.6
$26.56 · $1.5B
fundamentals as of
The model, pillar by pillar (0–100 each)
RDDT
stronger →← stronger
YELP
80
Qualityreturns · margins · balance sheet
88
100
Growthrevenue & earnings expansion
66
43
Valuevaluation vs sector peers
90
YELP is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
RDDT
YELP
$1.0bC+
FCF
$281mC
+66.6%A
Rev
+2.1%C
0.01A
D/E
0.25A-
37.2xC+
P/E
12.2xA-
1.01B+
PEG
0.57A-
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
RDDT
YELP
125% above
Price vs fair valuelower is cheaper
72% below
~38%/yr
Growth the price implies10-yr FCF · lower = less priced in
~-21%/yr
-66%
1-yr DCF upside
+211%
-55%
5-yr DCF upside
+254%
-37%
10-yr DCF upside
+327%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
RDDT
Why this score
- Diluting shareholders
- Short track record
YELP
Why this score
- Buying back stock
The companies
RDDTReddit, Inc.
Why now
Internet Content & Information · market cap $30.8b. Down 43% from 52-week high of $282.95 — deep drawdown territory. Revenue growing +67% — in hypergrowth territory. 33 sell-side analysts rate this a Buy with a mean 1-yr target of $218.17 (implying +36% upside).
Moat
Net margin 31% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 117% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 43% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.03 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
YELPYelp Inc.
Why now
Internet Content & Information · market cap $1.5b. Down 23% from 52-week high of $34.64 — deep drawdown territory. PEG 0.57 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Hold with a mean 1-yr target of $26.71 (implying +1% upside).
Moat
ROE 22% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.