Shutterstock (NYSE:SSTK – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Volatility & Risk
Shutterstock has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.
Institutional & Insider Ownership
82.8% of Shutterstock shares are held by institutional investors. 32.3% of Shutterstock shares are held by insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shutterstock | $989.92 million | 0.20 | $45.50 million | ($5.65) | -0.94 |
| WEBTOON Entertainment | $1.38 billion | 0.86 | -$345.93 million | ($2.63) | -3.35 |
Shutterstock has higher earnings, but lower revenue than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Shutterstock and WEBTOON Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shutterstock | -22.87% | 13.61% | 5.49% |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
Analyst Ratings
This is a summary of recent recommendations for Shutterstock and WEBTOON Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shutterstock | 1 | 1 | 1 | 0 | 2.00 |
| WEBTOON Entertainment | 1 | 5 | 2 | 0 | 2.12 |
Shutterstock presently has a consensus price target of $7.00, suggesting a potential upside of 31.83%. WEBTOON Entertainment has a consensus price target of $13.70, suggesting a potential upside of 55.68%. Given WEBTOON Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe WEBTOON Entertainment is more favorable than Shutterstock.
Summary
WEBTOON Entertainment beats Shutterstock on 7 of the 13 factors compared between the two stocks.
About Shutterstock
Shutterstock, Inc. provides platform to connect brands and businesses to high quality content in North America, Europe, and internationally. The company offers image services consisting of photographs, vectors, and illustrations, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications, and others; footage services, including video clips, filmed by industry experts and cinema grade video effects in HD and 4K formats that are integrated into websites, social media, marketing campaigns, and cinematic productions; and music services comprising music tracks and sound effects, which are used to complement images and footage. It also provides 3 dimensional models consisting of 3D models used in various industries, such as advertising, media and video production, gaming, retail, education, design, and architecture; and generative AI content comprising images generated from algorithms trained with ethically sourced content. The company offers its services under the Shutterstock, Pond5, TurboSquid, PicMonkey, PremiumBeat, Splash News, Bigstock, and Offset brand names. In addition, it operates a collection of graphics interchange format visuals and stickers that supplies casual conversational content. The company serves corporate professionals and organizations, media and broadcast companies, and small and medium-sized businesses, and individual creators through digital, live sales, and client management channels. Shutterstock, Inc. was founded in 2003 and is headquartered in New York, New York.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
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