People Inc. vs Reddit
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KIRAβs take AI analyst
I put People Inc. and Reddit side by side, using each oneβs latest annual report. Here is what stands out:
- People Inc. is the larger business, with $2.4B of revenue in fiscal 2025 against $2.2B for Reddit.
- Reddit grew revenue faster (69.4%, against β8.7%).
- Reddit kept more of each dollar of sales as operating profit (20.1% operating margin, against β4.1%).
- Reddit turned more of its sales into free cash flow (31.1% FCF margin, against 1.9%).
- Reddit earned a higher return on the capital invested in it (119.1%, against β1.3%).
- Investors pay more for each dollar of Redditβs earnings: a P/E of 32.2x against 8.5x for People Inc..
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
People Inc.
PPLI
1/10
Share count change
RDDT
8/10
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | PPLI FY25 | RDDT FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.9B | $28.0B |
| Revenue | $2.4B | $2.2B |
| Free cash flow | $44.8M | $684M |
| Net income | β$104M | $530M |
| Growth | ||
| Revenue growth | β8.7% | 69.4% |
| 5-year growth | β2.8% | β |
| Share count change | β3.7% | 38.9% |
| Profitability | ||
| Gross margin | 66.2% | 91.2% |
| Operating margin | β4.1% | 20.1% |
| Net margin | β4.4% | 24.1% |
| FCF margin | 1.9% | 31.1% |
| Return on capital | β1.3% | 119.1% |
| Return on equity | β2.0% | 20.9% |
| Balance sheet | ||
| Net debt | $481M | β$2.5B |
| Net debt / EBITDA | 14.5x | β5.4x |
| Dividends and buybacks | $315M | $0.0M |
| Valuation & quality | ||
| P/E | 8.5x | 32.2x |
| 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.