Contrasting ANGI Homeservices (NASDAQ:ANGI) and Shutterstock (SSTK)

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

Profitability

This table compares Shutterstock and ANGI Homeservices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shutterstock 4.58% 9.71% 5.50%
ANGI Homeservices -24.70% -24.06% -15.81%

Institutional and Insider Ownership

59.6% of Shutterstock shares are owned by institutional investors. Comparatively, 68.9% of ANGI Homeservices shares are owned by institutional investors. 47.3% of Shutterstock shares are owned by company insiders. Comparatively, 18.2% of ANGI Homeservices shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Shutterstock has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, ANGI Homeservices has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Shutterstock and ANGI Homeservices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shutterstock 1 4 0 0 1.80
ANGI Homeservices 1 5 7 0 2.46

Shutterstock presently has a consensus price target of $38.60, suggesting a potential downside of 16.99%. ANGI Homeservices has a consensus price target of $12.66, suggesting a potential downside of 10.79%. Given ANGI Homeservices’ stronger consensus rating and higher probable upside, analysts clearly believe ANGI Homeservices is more favorable than Shutterstock.

Valuation and Earnings

This table compares Shutterstock and ANGI Homeservices’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shutterstock $494.32 million 3.26 $32.62 million $0.69 67.39
ANGI Homeservices $736.39 million 1.21 -$103.11 million ($0.39) -36.38

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

Summary

Shutterstock beats ANGI Homeservices on 8 of the 13 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.

ANGI Homeservices Company Profile

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

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