Shutterstock (SSTK) vs. Leaf Group (DMD) Critical Survey
Shutterstock (NYSE: SSTK) and Leaf Group (NYSE:DMD) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Volatility and Risk
Shutterstock has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Leaf Group has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
Insider & Institutional Ownership
62.9% of Shutterstock shares are held by institutional investors. Comparatively, 58.8% of Leaf Group shares are held by institutional investors. 47.3% of Shutterstock shares are held by company insiders. Comparatively, 44.0% of Leaf Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Shutterstock and Leaf Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Shutterstock and Leaf Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shutterstock currently has a consensus price target of $38.40, indicating a potential upside of 11.73%. Leaf Group has a consensus price target of $7.75, indicating a potential upside of 22.05%. Given Leaf Group’s stronger consensus rating and higher possible upside, analysts clearly believe Leaf Group is more favorable than Shutterstock.
Earnings and Valuation
This table compares Shutterstock and Leaf Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Shutterstock||$517.47 million||2.30||$57.99 million||$0.81||42.43|
Shutterstock has higher revenue and earnings than Leaf Group. Leaf Group is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Shutterstock beats Leaf Group on 8 of the 11 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.
About Leaf Group
Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.
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