Comparing MediaAlpha (NYSE:MAX) and Shutterstock (NYSE:SSTK)

MediaAlpha (NYSE:MAX – Get Free Report) and Shutterstock (NYSE:SSTK – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares MediaAlpha and Shutterstock”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MediaAlpha $1.11 billion 0.52 $25.62 million $1.62 5.86
Shutterstock $989.92 million 0.15 $45.50 million ($5.65) -0.70

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

Profitability

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

Net Margins Return on Equity Return on Assets
MediaAlpha 7.94% -301.42% 28.23%
Shutterstock -22.87% 13.61% 5.49%

Risk and Volatility

MediaAlpha has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for MediaAlpha and Shutterstock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MediaAlpha 0 4 3 2 2.78
Shutterstock 1 1 1 0 2.00

MediaAlpha presently has a consensus price target of $14.29, indicating a potential upside of 50.46%. Shutterstock has a consensus price target of $7.00, indicating a potential upside of 77.35%. Given Shutterstock’s higher probable upside, analysts clearly believe Shutterstock is more favorable than MediaAlpha.

Insider and Institutional Ownership

64.4% of MediaAlpha shares are owned by institutional investors. Comparatively, 82.8% of Shutterstock shares are owned by institutional investors. 14.6% of MediaAlpha shares are owned by insiders. Comparatively, 32.3% of Shutterstock shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

MediaAlpha beats Shutterstock on 10 of the 15 factors compared between the two stocks.

About MediaAlpha

(Get Free Report)

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

About Shutterstock

(Get Free Report)

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.

Receive News & Ratings for MediaAlpha Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MediaAlpha and related companies with MarketBeat.com's FREE daily email newsletter.