Reviewing Reddit (NYSE:RDDT) & Shutterstock (NYSE:SSTK)

Reddit (NYSE:RDDT) and Shutterstock (NYSE:SSTK) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Earnings and Valuation

This table compares Reddit and Shutterstock”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$2.20 billion	13.68	$529.72 million	$4.30	36.43
Shutterstock	$989.92 million	0.17	$45.50 million	($5.65)	-0.79

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

Volatility & Risk

Reddit has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

82.8% of Shutterstock shares are owned by institutional investors. 28.5% of Reddit shares are owned by company insiders. Comparatively, 32.3% of Shutterstock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reddit	31.35%	29.02%	26.32%
Shutterstock	-22.87%	13.61%	5.49%

Analyst Ratings

This is a breakdown of current ratings and price targets for Reddit and Shutterstock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	0	10	17	2	2.72
Shutterstock	1	1	1	0	2.00

Reddit currently has a consensus target price of $219.29, indicating a potential upside of 39.98%. Shutterstock has a consensus target price of $7.00, indicating a potential upside of 57.62%. Given Shutterstock’s higher possible upside, analysts clearly believe Shutterstock is more favorable than Reddit.

Summary

Reddit beats Shutterstock on 12 of the 15 factors compared between the two stocks.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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.