Inovalon (NASDAQ:INOV) and Shutterstock (NYSE:SSTK) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
This table compares Inovalon and Shutterstock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
31.7% of Inovalon shares are held by institutional investors. Comparatively, 57.8% of Shutterstock shares are held by institutional investors. 50.4% of Inovalon shares are held by insiders. Comparatively, 46.8% of Shutterstock shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Inovalon and Shutterstock, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inovalon presently has a consensus target price of $18.25, indicating a potential upside of 9.48%. Shutterstock has a consensus target price of $38.00, indicating a potential downside of 9.59%. Given Inovalon’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Inovalon is more favorable than Shutterstock.
Earnings and Valuation
This table compares Inovalon and Shutterstock’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inovalon||$527.68 million||4.87||-$39.16 million||$0.18||92.61|
|Shutterstock||$623.25 million||2.38||$54.69 million||$1.05||40.03|
Shutterstock has higher revenue and earnings than Inovalon. Shutterstock is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Inovalon has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Shutterstock beats Inovalon on 8 of the 14 factors compared between the two stocks.
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 964,000 physicians; 519,000 clinical facilities; and approximately 264 million individuals and 42 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
Shutterstock, Inc. provides digital content, and tools and services in North America, Europe, and internationally. It offers digital imagery services that include licensed photographs, vectors, illustrations, and video clips, which is used in visual communications, such as Websites, digital and print marketing materials, corporate communications, books, publications, and video content; and 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 Select, Shutterstock Custom, Shutterstock Editorial, and Shutterstock Music names, as well as Superior search, Application programming interface, Showcase, and Editor and Editor Pro tools to enhance workflow and project management needs, and search capabilities. It serves marketing professionals and organizations, media and broadcast companies, and small and medium-sized businesses through online platform. Shutterstock, Inc. was founded in 2003 and is headquartered in New York, New York.
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