RDDT vs. VZ

Last updated Jun 3, 2026

RDDT (Reddit, Inc.) and VZ (Verizon Communications Inc.) are both stocks. Both are in the Communication Services sector — RDDT in Internet Content & Information, VZ in Telecom Services. Over the past year, RDDT returned 50.86% vs 15.86% for VZ. At a correlation of -0.17, they often move in opposite directions.

Performance

RDDT vs. VZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Reddit, Inc. (RDDT) and Verizon Communications Inc. (VZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RDDT achieves a -26.42% return, which is significantly lower than VZ's 21.37% return.

RDDT

• 1D: -4.90%
• 1M: 1.59%
• YTD: -26.42%
• 6M: -24.08%
• 1Y: 50.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VZ

• 1D: 0.29%
• 1M: -0.50%
• YTD: 21.37%
• 6M: 21.72%
• 1Y: 15.86%
• 3Y*: 19.21%
• 5Y*: 2.76%
• 10Y*: 4.80%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RDDT vs. VZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
RDDT Reddit, Inc.	-26.42%	40.64%	224.03%
VZ Verizon Communications Inc.	21.37%	8.86%	3.47%

Correlation

The correlation between RDDT and VZ is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.16
Correlation (All Time) Calculated using the full available price history since Mar 22, 2024	-0.17

Fundamentals

Market Cap RDDT : $34.25B VZ : $201.53B
EPS RDDT : $3.56 VZ : $4.10
PE Ratio RDDT : 47.52 VZ : 11.66
PS Ratio RDDT : 13.59 VZ : 1.45
PB Ratio RDDT : 10.77 VZ : 1.95
Total Revenue (TTM) RDDT : $2.47B VZ : $139.15B
Gross Profit (TTM) RDDT : $2.26B VZ : $81.89B
EBITDA (TTM) RDDT : $655.01M VZ : $48.65B

Return for Risk

RDDT vs. VZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RDDT

RDDT Risk / Return Rank: 61
RDDT Sharpe Ratio Rank: 65
RDDT Sortino Ratio Rank: 63
RDDT Omega Ratio Rank: 60
RDDT Calmar Ratio Rank: 60
RDDT Martin Ratio Rank: 57

VZ

VZ Risk / Return Rank: 62
VZ Sharpe Ratio Rank: 64
VZ Sortino Ratio Rank: 61
VZ Omega Ratio Rank: 58
VZ Calmar Ratio Rank: 64
VZ Martin Ratio Rank: 64

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RDDT vs. VZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Reddit, Inc. (RDDT) and Verizon Communications Inc. (VZ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RDDT	VZ	Difference
Sharpe ratio Return per unit of total volatility	0.78	0.72	+0.06
Sortino ratio Return per unit of downside risk	1.44	1.34	+0.10
Omega ratio Gain probability vs. loss probability	1.17	1.16	+0.01
Calmar ratio Return relative to maximum drawdown	0.92	1.22	-0.30
Martin ratio Return relative to average drawdown	1.73	2.66	-0.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RDDT vs. VZ - Sharpe Ratio Comparison

The current RDDT Sharpe Ratio is 0.78, which is comparable to the VZ Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of RDDT and VZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RDDT	VZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.78	0.72	+0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.13	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.24	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.91	0.23	+0.68

Drawdowns

RDDT vs. VZ - Drawdown Comparison

The maximum RDDT drawdown since its inception was -61.41%, which is greater than VZ's maximum drawdown of -50.66%. Use the drawdown chart below to compare losses from any high point for RDDT and VZ.

Drawdown Indicators

	RDDT	VZ	Difference
Max Drawdown Largest peak-to-trough decline	-61.41%	-50.66%	-10.75%
Max Drawdown (1Y) Largest decline over 1 year	-54.99%	-13.32%	-41.67%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.93%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-38.38%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.21%	—
Current Drawdown Current decline from peak	-37.52%	-5.43%	-32.09%
Average Drawdown Average peak-to-trough decline	-24.37%	-14.75%	-9.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.29%	6.11%	+23.18%

Volatility

RDDT vs. VZ - Volatility Comparison

Reddit, Inc. (RDDT) has a higher volatility of 18.15% compared to Verizon Communications Inc. (VZ) at 4.06%. This indicates that RDDT's price experiences larger fluctuations and is considered to be riskier than VZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RDDT	VZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	18.15%	4.06%	+14.09%
Volatility (6M) Calculated over the trailing 6-month period	44.65%	17.29%	+27.36%
Volatility (1Y) Calculated over the trailing 1-year period	65.46%	22.11%	+43.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	81.27%	21.51%	+59.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	81.27%	20.30%	+60.97%

Dividends

RDDT vs. VZ - Dividend Comparison

RDDT has not paid dividends to shareholders, while VZ's dividend yield for the trailing twelve months is around 5.78%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RDDT Reddit, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VZ Verizon Communications Inc.	5.78%	6.68%	6.68%	6.96%	6.53%	4.85%	4.21%	3.95%	4.22%	4.39%	4.26%	4.79%

Financials

RDDT vs. VZ - Profitability Comparison

The chart below illustrates the profitability comparison between Reddit, Inc. and Verizon Communications Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

RDDT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported a gross profit of 607.14M and revenue of 663.41M. Therefore, the gross margin over that period was 91.5%.

VZ - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Verizon Communications Inc. reported a gross profit of 20.77B and revenue of 34.44B. Therefore, the gross margin over that period was 60.3%.

RDDT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported an operating income of 182.91M and revenue of 663.41M, resulting in an operating margin of 27.6%.

VZ - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Verizon Communications Inc. reported an operating income of 8.24B and revenue of 34.44B, resulting in an operating margin of 23.9%.

RDDT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported a net income of 203.98M and revenue of 663.41M, resulting in a net margin of 30.8%.

VZ - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Verizon Communications Inc. reported a net income of 5.05B and revenue of 34.44B, resulting in a net margin of 14.7%.

Frequently Asked Questions

Can I hold both RDDT and VZ in my portfolio?

RDDT and VZ have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RDDT or VZ?

RDDT has higher volatility (18.15%) compared to VZ (4.06%). In terms of maximum drawdown, RDDT dropped -61.41% vs VZ's -50.66%.

Which has better risk-adjusted returns?

RDDT currently has the higher Sharpe Ratio (0.78 vs 0.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.