Shutterstock (NYSE: SSTK) and WebMD Health (NASDAQ:WBMD) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares Shutterstock and WebMD Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shutterstock 4.58% 9.71% 5.50%
WebMD Health 10.74% 15.50% 4.32%

Institutional & Insider Ownership

59.9% of Shutterstock shares are owned by institutional investors. Comparatively, 91.0% of WebMD Health shares are owned by institutional investors. 47.3% of Shutterstock shares are owned by insiders. Comparatively, 5.6% of WebMD Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Shutterstock and WebMD Health’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shutterstock $494.32 million 2.95 $32.62 million $0.69 60.97
WebMD Health N/A N/A N/A $1.93 34.45

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

Analyst Ratings

This is a summary of current recommendations for Shutterstock and WebMD Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shutterstock 1 4 0 0 1.80
WebMD Health 0 6 2 0 2.25

Shutterstock currently has a consensus target price of $38.60, suggesting a potential downside of 8.25%. WebMD Health has a consensus target price of $64.00, suggesting a potential downside of 3.73%. Given WebMD Health’s stronger consensus rating and higher possible upside, analysts clearly believe WebMD Health is more favorable than Shutterstock.

Summary

WebMD Health beats Shutterstock on 7 of the 10 factors compared between the two stocks.

Shutterstock Company Profile

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.

WebMD Health Company Profile

WebMD Health Corp. is a provider of health information services. The Company provides its services to consumers, physicians and other healthcare professionals through its Websites, mobile applications and health-focused publications. Advertisers and sponsors use The WebMD Health Network to reach and engage healthcare professionals and consumers who are interested in healthy living, wellness, diseases and conditions, and other health-related topics. It also markets services under the WebMD Health Services brand that help employers and health plans improve the health and wellness of their employee and plan participant populations. The WebMD Health Network includes www.WebMD.com, its primary Website for consumers and related mobile applications; www.Medscape.com, its primary Website for physicians and other healthcare professionals and related mobile applications; and other Websites through which it provides its branded health and wellness content, tools and services.

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