Shutterstock (NYSE:SSTK – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Institutional & Insider Ownership
82.8% of Shutterstock shares are owned by institutional investors. 32.3% of Shutterstock shares are owned by company insiders. Comparatively, 28.5% of Reddit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Shutterstock and Reddit”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shutterstock | $989.92 million | 0.15 | $45.50 million | ($5.65) | -0.71 |
| $2.20 billion | 12.99 | $529.72 million | $4.30 | 34.58 |
Reddit has higher revenue and earnings than Shutterstock. Shutterstock is trading at a lower price-to-earnings ratio than Reddit, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Shutterstock has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Reddit has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.
Profitability
This table compares Shutterstock and Reddit’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% |
| 31.35% | 29.02% | 26.32% |
Analyst Ratings
This is a breakdown of recent ratings for Shutterstock and Reddit, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shutterstock | 1 | 1 | 1 | 0 | 2.00 |
| 0 | 10 | 17 | 2 | 2.72 |
Shutterstock presently has a consensus price target of $7.00, suggesting a potential upside of 73.74%. Reddit has a consensus price target of $219.29, suggesting a potential upside of 47.49%. Given Shutterstock’s higher probable upside, equities analysts plainly believe Shutterstock is more favorable than Reddit.
Summary
Reddit beats Shutterstock on 12 of the 15 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 Reddit
Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
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