Getty Images (NYSE:GETY – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares Getty Images and Reddit”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Getty Images | $978.00 million | 0.01 | -$206.12 million | ($0.39) | -0.05 |
| $2.20 billion | 8.24 | $529.72 million | $4.90 | 19.25 |
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.
Insider and Institutional Ownership
45.8% of Getty Images shares are owned by institutional investors. 9.3% of Getty Images shares are owned by company insiders. Comparatively, 28.5% of Reddit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Getty Images and Reddit, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Getty Images | 2 | 3 | 1 | 0 | 1.83 |
| 0 | 15 | 14 | 2 | 2.58 |
Getty Images currently has a consensus target price of $3.92, suggesting a potential upside of 20,236.79%. Reddit has a consensus target price of $180.91, suggesting a potential upside of 91.76%. Given Getty Images’ higher possible upside, analysts plainly believe Getty Images is more favorable than Reddit.
Risk and Volatility
Getty Images has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.
Profitability
This table compares Getty Images and Reddit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Getty Images | -16.24% | -26.82% | -5.25% |
| 31.35% | 29.02% | 26.32% |
Summary
Reddit beats Getty Images on 12 of the 15 factors compared between the two stocks.
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.
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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