WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) and Shutterstock (NYSE:SSTK – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
82.8% of Shutterstock shares are held by institutional investors. 5.6% of WEBTOON Entertainment shares are held by company insiders. Comparatively, 32.3% of Shutterstock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares WEBTOON Entertainment and Shutterstock”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WEBTOON Entertainment | $1.37 billion | 0.96 | -$345.93 million | ($2.63) | -3.68 |
| Shutterstock | $901.29 million | 0.12 | $45.50 million | ($5.65) | -0.53 |
Shutterstock has lower revenue, but higher earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Shutterstock, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
WEBTOON Entertainment has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for WEBTOON Entertainment and Shutterstock, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
| Shutterstock | 1 | 1 | 1 | 0 | 2.00 |
WEBTOON Entertainment currently has a consensus price target of $10.88, indicating a potential upside of 12.46%. Shutterstock has a consensus price target of $7.00, indicating a potential upside of 135.45%. Given Shutterstock’s higher probable upside, analysts plainly believe Shutterstock is more favorable than WEBTOON Entertainment.
Profitability
This table compares WEBTOON Entertainment and Shutterstock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
| Shutterstock | -22.87% | 13.61% | 5.49% |
Summary
Shutterstock beats WEBTOON Entertainment on 8 of the 12 factors compared between the two stocks.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
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.
Receive News & Ratings for WEBTOON Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WEBTOON Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
