Shutterstock (NYSE: SSTK) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Shutterstock and Weibo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shutterstock 1 4 0 0 1.80
Weibo 0 0 7 0 3.00

Shutterstock currently has a consensus target price of $38.60, indicating a potential downside of 12.77%. Weibo has a consensus target price of $105.71, indicating a potential downside of 14.19%. Given Shutterstock’s higher possible upside, equities research analysts clearly believe Shutterstock is more favorable than Weibo.

Risk & Volatility

Shutterstock has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Weibo has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.

Earnings and Valuation

This table compares Shutterstock and Weibo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shutterstock $494.32 million 3.10 $32.62 million $0.69 64.13
Weibo $655.80 million 41.56 $108.02 million $1.17 105.29

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

Profitability

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

Net Margins Return on Equity Return on Assets
Shutterstock 4.58% 9.71% 5.50%
Weibo 26.85% 30.00% 20.97%

Insider & Institutional Ownership

59.8% of Shutterstock shares are owned by institutional investors. Comparatively, 22.0% of Weibo shares are owned by institutional investors. 47.3% of Shutterstock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Weibo beats Shutterstock on 11 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 Weibo

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

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