Analyzing Shutterstock (NYSE:SSTK) and PSQ (NYSE:PSQH)

Shutterstock (NYSE:SSTK) and PSQ (NYSE:PSQH) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Shutterstock and PSQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shutterstock	1	1	1	0	2.00
PSQ	1	0	1	0	2.00

Shutterstock presently has a consensus target price of $7.00, suggesting a potential upside of 52.01%. PSQ has a consensus target price of $52.50, suggesting a potential upside of 1,679.66%. Given PSQ’s higher possible upside, analysts plainly believe PSQ is more favorable than Shutterstock.

Profitability

This table compares Shutterstock and PSQ’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%
PSQ	-132.73%	-284.61%	-52.34%

Valuation and Earnings

This table compares Shutterstock and PSQ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shutterstock	$901.29 million	0.19	$45.50 million	($5.65)	-0.82
PSQ	$18.22 million	0.55	-$36.61 million	($10.99)	-0.27

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

Volatility and Risk

Shutterstock has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, PSQ has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

82.8% of Shutterstock shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 32.3% of Shutterstock shares are held by company insiders. Comparatively, 12.2% of PSQ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Shutterstock beats PSQ on 9 of the 12 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 PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.