Critical Comparison: Shutterstock (SSTK) and 58.com (WUBA)

Shutterstock (NYSE: SSTK) and 58.com (NYSE:WUBA) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares Shutterstock and 58.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shutterstock $517.47 million 2.25 $57.99 million $0.81 41.48
58.com $1.31 billion 7.11 $225.01 million $0.17 376.29

58.com has higher revenue and earnings than Shutterstock. Shutterstock is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Shutterstock has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, 58.com has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Shutterstock and 58.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shutterstock 1 6 0 0 1.86
58.com 3 4 6 0 2.23

Shutterstock presently has a consensus price target of $38.40, indicating a potential upside of 14.29%. 58.com has a consensus price target of $53.10, indicating a potential downside of 16.99%. Given Shutterstock’s higher probable upside, equities analysts plainly believe Shutterstock is more favorable than 58.com.

Insider and Institutional Ownership

63.0% of Shutterstock shares are held by institutional investors. Comparatively, 60.0% of 58.com shares are held by institutional investors. 47.3% of Shutterstock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Shutterstock and 58.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shutterstock 5.59% 11.08% 6.34%
58.com 2.14% 1.04% 0.72%

About Shutterstock

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 58.com

58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.

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