Shutterstock (NYSE: SSTK) and CoStar Group (NASDAQ:CSGP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitabiliy and dividends.

Risk & Volatility

Shutterstock has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, CoStar Group has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Profitability

This table compares Shutterstock and CoStar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shutterstock 5.59% 11.08% 6.34%
CoStar Group 10.85% 7.19% 5.49%

Insider and Institutional Ownership

60.7% of Shutterstock shares are held by institutional investors. 47.3% of Shutterstock shares are held by company insiders. Comparatively, 3.0% of CoStar Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Shutterstock and CoStar Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shutterstock $517.47 million 2.32 $57.96 million $0.81 42.83
CoStar Group $894.73 million 10.08 $220.39 million $2.99 91.88

CoStar Group has higher revenue and earnings than Shutterstock. Shutterstock is trading at a lower price-to-earnings ratio than CoStar Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Shutterstock and CoStar Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shutterstock 0 6 0 0 2.00
CoStar Group 0 0 5 0 3.00

Shutterstock currently has a consensus price target of $44.00, suggesting a potential upside of 26.84%. CoStar Group has a consensus price target of $308.00, suggesting a potential upside of 12.11%. Given Shutterstock’s higher possible upside, equities analysts plainly believe Shutterstock is more favorable than CoStar Group.

Summary

CoStar Group beats Shutterstock on 9 of the 14 factors compared between the two stocks.

About Shutterstock

Shutterstock, Inc. (Shutterstock) is a global technology company that operates a two-sided marketplace for professionals to license content. The Company’s library of content includes digital imagery, which consists of 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, which consists of music tracks and sound effects and which is often used to complement digital imagery. It also offers digital asset management services through its cloud-based digital asset management platform (webdam). Its global marketplace brings together users and contributors of content by providing a collection of content its customers can pay to license and incorporate into their work and by compensating contributors as their content is licensed to customers.

About CoStar Group

CoStar Group, Inc. (CoStar) is a provider of information, analytics and online marketplaces to the commercial real estate and related business community through its database of commercial real estate information covering the United States, the United Kingdom, and parts of Canada, Spain, Germany and France. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale. It manages its business geographically in two segments: North America, which includes the United States and Canada, and International, which includes the United Kingdom, Spain, Germany and France. Its suite of information, analytics and online marketplaces is branded and marketed to its customers. Its services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing and using its information. It has five brands: CoStar, LoopNet, Apartments.com, BizBuySell and LandsofAmerica.

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