Reddit vs Tripadvisor
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KIRAβs take AI analyst
I put Reddit and Tripadvisor side by side, using each oneβs latest annual report. Here is what stands out:
- Reddit is the larger business, with $2.2B of revenue in fiscal 2025 against $1.9B for Tripadvisor.
- Reddit grew revenue faster (69.4%, against 3.1%).
- Reddit kept more of each dollar of sales as operating profit (20.1% operating margin, against 4.2%).
- Reddit turned more of its sales into free cash flow (31.1% FCF margin, against 8.6%).
- Reddit earned a higher return on the capital invested in it (119.1%, against 8.9%).
- Investors pay more for each dollar of Tripadvisorβs earnings: a P/E of 154.0x against 32.2x for Reddit.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
RDDT
7/10
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Tripadvisor
TRIP
2/10
Gross marginShare count change
Side by side
Best in the row
| Latest fiscal year | RDDT FY25 | TRIP FY25 |
|---|---|---|
| Size | ||
| Market cap | $28.0B | $1.1B |
| Revenue | $2.2B | $1.9B |
| Free cash flow | $684M | $163M |
| Net income | $530M | $40.0M |
| Growth | ||
| Revenue growth | 69.4% | 3.1% |
| 5-year growth | β | 25.6% |
| Share count change | 38.9% | β9.7% |
| Profitability | ||
| Gross margin | 91.2% | 92.3% |
| Operating margin | 20.1% | 4.2% |
| Net margin | 24.1% | 2.1% |
| FCF margin | 31.1% | 8.6% |
| Return on capital | 119.1% | 8.9% |
| Return on equity | 20.9% | 5.0% |
| Balance sheet | ||
| Net debt | β$2.5B | $180M |
| Net debt / EBITDA | β5.4x | 1.1x |
| Dividends and buybacks | $0.0M | $90.0M |
| Valuation & quality | ||
| P/E | 32.2x | 154.0x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.