Head-To-Head Review: Shutterstock (SSTK) and Yelp (YELP)
Shutterstock (NYSE: SSTK) and Yelp (NYSE:YELP) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Shutterstock and Yelp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Shutterstock||$517.47 million||2.25||$57.99 million||$0.81||41.59|
|Yelp||$787.22 million||4.31||$43.09 million||$0.15||276.20|
Shutterstock has higher revenue, but lower earnings than Yelp. Shutterstock is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
This table compares Shutterstock and Yelp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
62.0% of Shutterstock shares are held by institutional investors. Comparatively, 95.4% of Yelp shares are held by institutional investors. 47.3% of Shutterstock shares are held by insiders. Comparatively, 10.1% of Yelp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Shutterstock and Yelp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shutterstock currently has a consensus target price of $42.40, suggesting a potential upside of 25.85%. Yelp has a consensus target price of $37.91, suggesting a potential downside of 8.50%. Given Shutterstock’s higher possible upside, equities analysts clearly believe Shutterstock is more favorable than Yelp.
Volatility and Risk
Shutterstock has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Yelp has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Shutterstock Company Profile
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.
Yelp Company Profile
Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).
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