Top 15 Fastest-Growing Profitable Communication Services Stocks
Marvin's rules found 15 profitable Communication Services companies, ranked by last-fiscal-year revenue growth. Reddit grew fastest, followed by Array Digital Infrastructure and EverQuote. T-Mobile US sits at the slower end of the group.
Communication Services covers businesses that connect people or deliver media and messages. Examples include phone networks, streaming, publishing, advertising and online platforms. This list picks out the 15 companies in that sector that are profitable and grew revenue the fastest in their last fiscal year.
Fast growth is only part of the story. A company can grow quickly and still keep little of each dollar as profit, or take on a lot of debt to fund that growth. So each pick below also shows margins and, where available, a debt figure.
Marvin's scores run from 0 to 100 and compare a company with others in its own industry, not with the whole market. They describe where a company stands today and are not predictions. Some figures are missing for certain stocks, and each blurb notes this where it matters.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size from the Communication Services sector. Each had to be profitable and have an Overall score of at least 55, with no more than 4 stocks per industry. The list is then ordered by last-fiscal-year revenue growth, fastest first. Marvin scores (0-100) are relative to each company's own industry, so a score of one company says how it compares with industry peers, not with every stock.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Communication Services sector, fastest last-fiscal-year revenue growth first, among profitable companies with an Overall score of at least 55; at most 4 per industry.
The stocks, one by one
Reddit, Inc. RDDT
Reddit tops the list with revenue growth of 69.4% last fiscal year, plus an operating margin of 28.2% and a free cash flow margin of 36.7%. That suggests rapid growth that is also turning into real profit. Caution: no debt-to-equity figure is available, so its borrowing can't be judged here.
Array Digital Infrastructure Inc AD
Array Digital Infrastructure grew revenue 58.3% and shows an operating margin of 241.3%, an unusually high figure. Its free cash flow margin is -158.3%, meaning cash went out rather than in. Caution: profit and cash don't line up, and its Overall score of 61 is among the lower ones here.
EverQuote, Inc. EVER
EverQuote grew revenue 38.5% and keeps a very high gross margin of 97.6%. Its Overall score is 86. Caution: the operating margin of 11.0% is much smaller than the gross margin, so other costs take a big share, and no debt figure is available.
MediaAlpha, Inc. MAX
MediaAlpha grew revenue 28.8%, but margins are thin: 6.9% operating and just 14.7% gross. Its return on equity of 342.2% looks striking, yet a debt-to-equity ratio of 6.22 means heavy borrowing may be inflating it. Caution: little profit is kept from each sale.
DoorDash, Inc. DASH
DoorDash grew revenue 27.9% and turned 16.3% of revenue into free cash flow, a decent cash showing. Caution: the operating margin is only 4.5%, its Opportunity score is a low 28, and gross margin and debt figures are not available.
Formula One Group FWONA
Formula One Group grew revenue 22.7% with a free cash flow margin of 19.0% and a modest debt-to-equity ratio of 0.65. Its Quality score is 89. Caution: return on equity is only 5.4%, and the Opportunity score of 40 is middling.
Liberty Media Corporation FWONK
Liberty Media shows the same growth (22.7%), operating margin (11.9%) and return on equity (5.4%) as FWONA, with a debt-to-equity ratio of 0.65. Its Overall score is 72. Caution: returns on equity are low, and gross margin is missing.
Entravision Communications EVC
Entravision Communications grew revenue 22.6%, with an Overall score of 82. Caution: the operating margin is only 3.1%, return on equity is 5.0%, and the debt-to-equity ratio of 2.47 shows more borrowing than most names on this list.
The Trade Desk, Inc. TTD
The Trade Desk grew revenue 18.5% and combines a strong operating margin of 19.6% with a free cash flow margin of 28.9%. Its Quality score is 94. Caution: growth is slower than the leaders here, and no debt figure is available.
QuinStreet, Inc. QNST
QuinStreet has the highest Overall score among the faster growers at 89, with revenue growth of 18.3% and low debt (debt-to-equity 0.24). Caution: margins are thin, with an operating margin of 2.7% and a gross margin of 11.3%.
Netflix, Inc. NFLX
Netflix has the second-highest Overall score here at 92, with revenue growth of 15.9%, an operating margin of 29.7% and return on equity of 45.3%. Caution: growth is slower than most of the list, and its Opportunity score of 62 is only middling.
Roku, Inc. ROKU
Roku grew revenue 15.2% and converted 13.6% of revenue into free cash flow. Caution: its operating margin is just 5.2%, its Opportunity score is a low 25, and its Overall score of 63 is among the lowest here. No debt figure is available.
Omnicom Group Inc. OMC
Omnicom Group has the top Overall score on the list at 94, with revenue growth of 10.1% and a free cash flow margin of 15.1%. Caution: the operating margin is only 3.2% and return on equity is a very low 0.7%. No debt figure is available.
The New York Times Company NYT
The New York Times Company grew revenue 9.2%, with an operating margin of 16.0%, a free cash flow margin of 20.9% and return on equity of 19.2%. That points to steady, profitable results. Caution: growth is near the bottom of this list, and gross margin and debt figures are missing.
T-Mobile US, Inc. TMUS
T-Mobile US grew revenue 8.5%, the slowest on this list, but pairs it with an operating margin of 19.8% and a free cash flow margin of 20.0%. Its Overall score is 87. Caution: no debt figure or gross margin is available to check borrowing.
Common questions
Does fast revenue growth make a company a better stock?
Not by itself. Revenue growth shows how quickly sales rose in the last fiscal year, but not whether the company keeps much of that money as profit or how much debt it took on. That is why this list also shows margins and, where available, debt.
What is operating margin and why does it matter here?
Operating margin is the share of revenue left after the costs of running the business, before interest and taxes. A higher figure means more of each sale is kept as operating profit. Several fast growers here have thin operating margins, so growth has not yet turned into much profit.
Why do some stocks have no debt or gross margin figure?
Marvin only shows a figure when the data is available for that company. Some companies do not report a gross margin in a comparable way, and debt-to-equity can be missing. Where a figure is absent, treat that part of the picture as unknown rather than good or bad.
Keep reading
- Top 15 Communication Services Stocks by Business Quality
- Top 15 Communication Services Stocks by Marvin Score
- Top 15 Entertainment Stocks, Ranked by Marvin Scores
- Top 15 Internet Content & Information Stocks
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.