Shutterstock (NYSE: SSTK) and Tucows (NASDAQ:TCX) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Earnings and Valuation
This table compares Shutterstock and Tucows’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shutterstock||$494.32 million||3.03||$32.62 million||$0.69||62.55|
|Tucows||$189.82 million||3.44||$16.06 million||$1.30||47.54|
This is a summary of recent ratings and recommmendations for Shutterstock and Tucows, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shutterstock currently has a consensus price target of $38.60, suggesting a potential downside of 10.57%. Given Shutterstock’s higher probable upside, research analysts clearly believe Shutterstock is more favorable than Tucows.
Volatility and Risk
Shutterstock has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Tucows has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Institutional and Insider Ownership
60.0% of Shutterstock shares are owned by institutional investors. Comparatively, 54.7% of Tucows shares are owned by institutional investors. 47.3% of Shutterstock shares are owned by insiders. Comparatively, 13.2% of Tucows shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Shutterstock and Tucows’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shutterstock beats Tucows on 8 of the 12 factors compared between the two stocks.
Shutterstock, Inc. (Shutterstock) is a global technology company that operates a two-sided marketplace for professionals to license content. The Company’s library of content includes digital imagery, which consists of licensed photographs, vectors, illustrations and video clips that customers use in their visual communications, such as Websites, digital and print marketing materials, corporate communications, books, publications and video content, and commercial music, which consists of music tracks and sound effects and which is often used to complement digital imagery. It also offers digital asset management services through its cloud-based digital asset management platform (webdam). Its global marketplace brings together users and contributors of content by providing a collection of content its customers can pay to license and incorporate into their work and by compensating contributors as their content is licensed to customers.
Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.
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