Shutterstock (NYSE:SSTK – Get Free Report) and Teads (NASDAQ:TEAD – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Shutterstock and Teads, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shutterstock | 1 | 1 | 1 | 0 | 2.00 |
| Teads | 1 | 2 | 1 | 0 | 2.00 |
Shutterstock currently has a consensus price target of $7.00, suggesting a potential upside of 43.00%. Teads has a consensus price target of $1.00, suggesting a potential upside of 85.19%. Given Teads’ higher possible upside, analysts plainly believe Teads is more favorable than Shutterstock.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shutterstock | $989.92 million | 0.18 | $45.50 million | ($5.65) | -0.87 |
| Teads | $1.30 billion | 0.04 | -$517.07 million | ($5.53) | -0.10 |
Shutterstock has higher earnings, but lower revenue than Teads. Shutterstock is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
82.8% of Shutterstock shares are held by institutional investors. Comparatively, 60.4% of Teads shares are held by institutional investors. 32.3% of Shutterstock shares are held by insiders. Comparatively, 12.0% of Teads shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Shutterstock has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Teads has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.
Profitability
This table compares Shutterstock and Teads’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shutterstock | -22.87% | 13.61% | 5.49% |
| Teads | -43.32% | -49.37% | -6.14% |
Summary
Shutterstock beats Teads on 7 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 Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
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