Analyzing Shutterstock (NYSE:SSTK) & BIT Mining (NYSE:BTCM)

Shutterstock (NYSE:SSTK) and BIT Mining (NYSE:BTCM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

Shutterstock has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, BIT Mining has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.

Valuation and Earnings

This table compares Shutterstock and BIT Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shutterstock	$902.18 million	0.88	$110.27 million	$1.02	22.38
BIT Mining	$41.41 million	0.70	-$28.71 million	($1.31)	-1.46

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shutterstock	4.03%	20.39%	9.75%
BIT Mining	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Shutterstock and BIT Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shutterstock	0	3	1	0	2.25
BIT Mining	0	1	0	0	2.00

Shutterstock presently has a consensus target price of $50.33, indicating a potential upside of 120.52%. Given Shutterstock’s stronger consensus rating and higher possible upside, equities analysts clearly believe Shutterstock is more favorable than BIT Mining.

Institutional & Insider Ownership

82.8% of Shutterstock shares are owned by institutional investors. Comparatively, 5.3% of BIT Mining shares are owned by institutional investors. 32.0% of Shutterstock shares are owned by insiders. Comparatively, 19.7% of BIT Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Shutterstock beats BIT Mining on 13 of the 14 factors compared between the two stocks.

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.

About BIT Mining

BIT Mining Limited operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong. The company operates in two segments: Data Center and Cryptocurrency Mining. It operates a cryptocurrency mining data center in Ohio with power capacity of 82.5 megawatts; and purchases and deploys bitcoin mining machines. In addition, it engages in online gaming activities; and provision of technology services. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is based in Akron, Ohio.