Shutterstock (NYSE:SSTK) and Sohu.com (NASDAQ:SOHU) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk & Volatility
Shutterstock has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Sohu.com has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This table compares Shutterstock and Sohu.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Shutterstock and Sohu.com, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shutterstock presently has a consensus price target of $42.33, suggesting a potential upside of 11.87%. Given Shutterstock’s higher possible upside, equities research analysts clearly believe Shutterstock is more favorable than Sohu.com.
Valuation and Earnings
This table compares Shutterstock and Sohu.com’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shutterstock||$557.11 million||2.38||$16.72 million||$0.71||53.30|
|Sohu.com||$1.86 billion||0.39||-$554.52 million||($8.77)||-2.13|
Shutterstock has higher earnings, but lower revenue than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
55.0% of Shutterstock shares are owned by institutional investors. Comparatively, 63.8% of Sohu.com shares are owned by institutional investors. 47.2% of Shutterstock shares are owned by insiders. Comparatively, 21.1% of Sohu.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Shutterstock beats Sohu.com on 10 of the 12 factors compared between the two stocks.
Shutterstock Company Profile
Shutterstock, Inc. provides content products and services in North America, Europe, and internationally. It offers digital imagery services, which include licensed photographs, vectors, illustrations, and video clips that customers use in their visual communications, such as Websites, digital and print marketing materials, corporate communications, books, publications, and video content; and commercial music services comprising music tracks and sound effects that are used to complement digital imagery. The company provides its services under the Shutterstock, Bigstock, Offset, Shutterstock Custom, Shutterstock Music, and Shutterstock Editorial names. It also offers digital asset management services through Webdam, a cloud-based digital asset management platform, which provides tools for customers to manage content and brand management assets; and Shutterstock Editor, a cloud-based workflow tool. The company serves marketing agencies, media professionals, and other organizations. Shutterstock, Inc. was founded in 2003 and is headquartered in New York, New York.
Sohu.com Company Profile
Sohu.com Inc. provides online media, search, and game services on personal computers (PCs), mobile devices, and tablets in the People's Republic of China. The company operates sohu.com, which provides online news and information; Sohu News APP, a mobile phone application, as well as m.sohu.com mobile portal; tv.sohu.com that offers online video content and service, as well as Sohu Video APP, a mobile phone application; and focus.cn, which provides online real estate information and services. It also offers paid subscription services, interactive broadcasting services, and sub-licensing of purchased video content to third parties. The company's search and search-related business provides Sogou Search, which makes information accessible for Chinese Internet users; Sogou Input Method, a cloud-based Chinese language input software for PC and mobile users; Sogou Browser for Web navigation; Sogou Web Directory, a content aggregation and distribution platform; and Sogou Translation to deliver language translation, as well as offers pay-for-click and other online advertising services for advertisers. In addition, its online game business offers PC games, mobile games, and Web games to game players. Further, the company's platform channel business operates 17173.com Website, a game information portal; RaidCall, which provides online music and entertainment services; and MoboTap that offers software applications for PCs and mobile devices through the Dolphin Browser, a gateway to a host of user activities on mobile devices, as well as online card and board games. Additionally, it provides Internet value-added services; and cinema advertising services. The company was formerly known as Internet Technologies China Incorporated and changed its name to Sohu.com Inc. in September 1999. Sohu.com Inc. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.
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