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 superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
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 | -51.19% | 13.31% | 4.76% |
| WEBTOON Entertainment | -25.18% | 1.71% | 1.29% |
Earnings and Valuation
This table compares Shutterstock and WEBTOON Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shutterstock | $989.92 million | 0.10 | $45.50 million | ($11.37) | -0.24 |
| WEBTOON Entertainment | $1.38 billion | 0.97 | -$345.93 million | ($2.60) | -3.81 |
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.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Shutterstock and WEBTOON Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shutterstock | 1 | 1 | 1 | 0 | 2.00 |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
Shutterstock presently has a consensus price target of $7.00, suggesting a potential upside of 156.88%. WEBTOON Entertainment has a consensus price target of $10.88, suggesting a potential upside of 9.85%. Given Shutterstock’s higher possible upside, equities analysts clearly believe Shutterstock is more favorable than WEBTOON Entertainment.
Volatility and Risk
Shutterstock has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500.
Insider and Institutional Ownership
82.8% of Shutterstock shares are owned by institutional investors. 32.3% of Shutterstock shares are owned by insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are owned 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.
Summary
Shutterstock beats WEBTOON Entertainment on 7 of the 12 factors compared between the two stocks.
About Shutterstock
Shutterstock, Inc. is a global creative-content company that provides licensed visual, audio and other media to businesses, organizations and individual creators. Its offerings include stock photographs, illustrations, vectors, video footage, music and sound effects, as well as editorial images and 3D assets. The company serves customers worldwide through its digital platforms, which also provide tools for searching, editing and managing creative assets. Its portfolio includes brands such as Shutterstock, Pond5, TurboSquid and Shutterstock Editorial.
About WEBTOON Entertainment
WEBTOON Entertainment operates a digital storytelling platform where readers can access comics, webtoons and related content on mobile devices and the web. Its services connect readers with independent creators and professional publishers, and include platforms such as WEBTOON and Wattpad. The company’s business includes paid content and advertising, as well as developing and licensing story properties for adaptations across formats such as television, film and games. Its entertainment properties have been adapted and distributed through its studios and industry partners.
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