Head-to-Head Comparison: Data Storage vs. Shutterstock

Posted on January 8th, 2025

Shutterstock (NYSE:SSTK) and Data Storage (NASDAQ:DTST) are both small-cap companies in the technology sector, each with their own unique strengths and challenges. In this article, we will compare these companies across various dimensions including profitability, dividends, analyst recommendations, institutional ownership, valuation, risk, and earnings.

Institutional and Insider Ownership

A significant portion of Shutterstock's stock, approximately 82.8%, is owned by institutional investors, indicating a strong belief in its long-term potential among major money managers. In contrast, Data Storage has only 11.6% of its shares owned by institutional investors. Additionally, company insiders hold 32.0% of Shutterstock shares, while 42.2% of Data Storage shares are owned by insiders, showing a more concentrated insider ownership at Data Storage.

Profitability

When analyzing profitability, Shutterstock has net margins of 4.03%, a return on equity of 20.39%, and a return on assets of 9.75%. Data Storage, on the other hand, has much lower figures with net margins of 0.64%, a return on equity of 0.79%, and a return on assets of 0.66%. This demonstrates that Shutterstock has a considerably stronger profitability profile.

Risk and Volatility

In terms of stock price volatility, Shutterstock's beta is calculated at 1.08, making it approximately 8% more volatile than the S&P 500 index. Alternatively, Data Storage has a beta of 0.77, indicating that its stock is about 23% less volatile than the market benchmark, suggesting that shares of Data Storage might be considered a safer investment in terms of price fluctuations.

Earnings and Valuation

Shutterstock outperforms Data Storage significantly in terms of revenue and earnings. It reported a gross revenue of $902.18 million and a net income of $110.27 million, resulting in a price-to-earnings ratio of 33.87. Data Storage's gross revenue stands at $25.14 million, with a net income of only $380,000 and a higher price-to-earnings ratio of 246.50. This means that Shutterstock is currently regarded as a more affordable stock based on its price-to-earnings ratio.

Analyst Recommendations

Recent recommendations from analysts suggest a more favorable outlook for Shutterstock compared to Data Storage. According to MarketBeat, Shutterstock has no sell ratings, two hold ratings, and two buy ratings, with an average target price of $53.67, indicating potential growth of 55.33%. Data Storage does not have any buy or sell ratings, highlighting a lack of analyst coverage or confidence in its prospects.

Summary

Overall, Shutterstock shows better performance than Data Storage in the majority of comparisons. Out of 14 examined factors, Shutterstock outperformed Data Storage in 11, indicating a more robust business position.

About Shutterstock

Shutterstock, Inc. connects brands to high-quality content through its services, which include image resources, video footage, music tracks, and 3D models. Their offerings are utilized across various industries and platforms, ensuring they serve a broad customer base. Founded in 2003 and based in New York, shutterstock.com has established itself as a significant player in digital content.

About Data Storage

Data Storage Corporation specializes in data management and cloud solutions. The company provides a variety of multi-cloud IT services, focusing on security, data protection, and recovery solutions. With its establishment in 2001, Data Storage Corporation aims to compete in the cloud services market while supporting businesses across multiple industries. Their headquarters is located in Melville, New York.

Data, Storage, Shutterstock