Comparing Shutterstock (NYSE:SSTK) and ZoomInfo Technologies (NASDAQ:ZI)

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

Institutional & Insider Ownership

82.8% of Shutterstock shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 32.3% of Shutterstock shares are owned by company insiders. Comparatively, 9.0% of ZoomInfo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Shutterstock and ZoomInfo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shutterstock	-22.87%	13.61%	5.49%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Volatility & Risk

Shutterstock has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Shutterstock and ZoomInfo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shutterstock	1	1	1	0	2.00
ZoomInfo Technologies	2	2	1	0	1.80

Shutterstock currently has a consensus target price of $7.00, indicating a potential upside of 77.44%. ZoomInfo Technologies has a consensus target price of $5.19, indicating a potential upside of 39.82%. Given Shutterstock’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Shutterstock is more favorable than ZoomInfo Technologies.

Valuation and Earnings

This table compares Shutterstock and ZoomInfo Technologies”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)	-0.70
ZoomInfo Technologies	$1.21 billion	1.05	$107.30 million	$0.12	30.92

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

Summary

ZoomInfo Technologies beats Shutterstock on 7 of the 13 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 ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.