Head-To-Head Comparison: Shutterstock (NYSE:SSTK) and NerdWallet (NASDAQ:NRDS)

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

Valuation and Earnings

This table compares NerdWallet 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
NerdWallet	$687.60 million	0.98	-$11.80 million	$0.40	22.63
Shutterstock	$935.26 million	0.70	$110.27 million	$1.01	18.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NerdWallet	4.42%	-2.08%	-1.73%
Shutterstock	4.03%	20.39%	9.75%

Institutional & Insider Ownership

38.8% of NerdWallet shares are owned by institutional investors. Comparatively, 82.8% of Shutterstock shares are owned by institutional investors. 45.9% of NerdWallet shares are owned by company insiders. Comparatively, 32.0% of Shutterstock shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

NerdWallet has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for NerdWallet and Shutterstock, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	0	1	4	0	2.80
Shutterstock	0	3	1	0	2.25

NerdWallet currently has a consensus target price of $17.00, suggesting a potential upside of 87.85%. Shutterstock has a consensus target price of $45.33, suggesting a potential upside of 141.84%. Given Shutterstock’s higher probable upside, analysts clearly believe Shutterstock is more favorable than NerdWallet.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.

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.