Reddit (NYSE:RDDT – Get Free Report) and Life360 (NASDAQ:LIF – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Reddit and Life360″s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $804.03 million | 39.80 | -$90.82 million | N/A | N/A | |
| Life360 | $304.52 million | 11.63 | -$28.17 million | N/A | N/A |
Life360 has lower revenue, but higher earnings than Reddit.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 1 | 7 | 12 | 1 | 2.62 | |
| Life360 | 0 | 0 | 7 | 1 | 3.13 |
Reddit presently has a consensus target price of $158.20, suggesting a potential downside of 13.19%. Life360 has a consensus target price of $47.63, suggesting a potential upside of 0.41%. Given Life360’s stronger consensus rating and higher probable upside, analysts plainly believe Life360 is more favorable than Reddit.
Profitability
This table compares Reddit and Life360’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| -47.83% | -40.54% | -27.32% | |
| Life360 | -4.72% | -4.03% | -3.16% |
Insider & Institutional Ownership
20.0% of Life360 shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Life360 beats Reddit on 7 of the 10 factors compared between the two stocks.
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.
About Life360
Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.
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