Critical Survey: Connecture (CNXR) versus Shutterstock (SSTK)
Connecture (NASDAQ: CNXR) and Shutterstock (NYSE:SSTK) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
This is a summary of current ratings and recommmendations for Connecture and Shutterstock, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shutterstock has a consensus target price of $38.40, suggesting a potential upside of 16.01%. Given Shutterstock’s higher probable upside, analysts plainly believe Shutterstock is more favorable than Connecture.
This table compares Connecture and Shutterstock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Connecture has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Institutional and Insider Ownership
38.8% of Connecture shares are held by institutional investors. Comparatively, 63.0% of Shutterstock shares are held by institutional investors. 58.1% of Connecture shares are held by insiders. Comparatively, 47.3% of Shutterstock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Connecture and Shutterstock’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Connecture||$82.18 million||0.20||-$8.20 million||($1.02)||-0.72|
|Shutterstock||$517.47 million||2.21||$57.99 million||$0.81||40.86|
Shutterstock has higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Shutterstock beats Connecture on 9 of the 11 factors compared between the two stocks.
Connecture Company Profile
Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.
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.
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