Sohu.com (NASDAQ:SOHU) and Shutterstock (NYSE:SSTK) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings for Sohu.com and Shutterstock, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sohu.com | 0 | 2 | 1 | 0 | 2.33 |
| Shutterstock | 0 | 1 | 1 | 0 | 2.50 |
Sohu.com presently has a consensus target price of $10.65, suggesting a potential downside of 55.04%. Shutterstock has a consensus target price of $43.50, suggesting a potential downside of 24.73%. Given Shutterstock's stronger consensus rating and higher probable upside, analysts plainly believe Shutterstock is more favorable than Sohu.com.
Profitability
This table compares Sohu.com and Shutterstock's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sohu.com | -6.00% | -8.61% | -4.10% |
| Shutterstock | 5.05% | 10.85% | 5.74% |
Institutional and Insider Ownership
44.2% of Sohu.com shares are owned by institutional investors. Comparatively, 55.5% of Shutterstock shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by insiders. Comparatively, 46.8% of Shutterstock shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Sohu.com and Shutterstock's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sohu.com | $1.85 billion | 0.50 | $-149,340,000.00 | ($3.25) | -7.29 |
| Shutterstock | $650.52 million | 3.17 | $20.11 million | $0.74 | 78.09 |
Shutterstock has lower revenue, but higher earnings than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sohu.com has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Summary
Shutterstock beats Sohu.com on 11 of the 13 factors compared between the two stocks.
