CI&T (NYSE:CINT) & Reddit (NYSE:RDDT) Financial Contrast

CI&T (NYSE:CINT) and Reddit (NYSE:RDDT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Profitability

This table compares CI&T and Reddit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI&T	7.83%	12.42%	6.74%
Reddit	18.33%	14.94%	13.58%

Analyst Ratings

This is a summary of recent ratings and target prices for CI&T and Reddit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI&T	1	2	4	1	2.63
Reddit	2	10	15	2	2.59

CI&T presently has a consensus target price of $7.16, indicating a potential upside of 65.17%. Reddit has a consensus target price of $230.28, indicating a potential downside of 4.77%. Given CI&T’s stronger consensus rating and higher possible upside, equities analysts plainly believe CI&T is more favorable than Reddit.

Earnings and Valuation

This table compares CI&T and Reddit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI&T	$439.11 million	1.33	$29.49 million	$0.27	16.06
Reddit	$1.30 billion	35.24	-$484.28 million	$1.74	138.97

CI&T has higher earnings, but lower revenue than Reddit. CI&T is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.5% of CI&T shares are held by institutional investors. 34.3% of Reddit shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

CI&T has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Summary

Reddit beats CI&T on 11 of the 15 factors compared between the two stocks.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.

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.