Critical Analysis: RELX (NYSE:RELX) vs. Shutterstock (NYSE:SSTK)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for RELX and Shutterstock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RELX	0	0	4	1	3.20
Shutterstock	0	3	1	0	2.25

Shutterstock has a consensus price target of $43.67, indicating a potential upside of 107.84%. Given Shutterstock’s higher probable upside, analysts clearly believe Shutterstock is more favorable than RELX.

Volatility and Risk

RELX has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Dividends

RELX pays an annual dividend of $0.53 per share and has a dividend yield of 1.1%. Shutterstock pays an annual dividend of $1.32 per share and has a dividend yield of 6.3%. RELX pays out 28.5% of its earnings in the form of a dividend. Shutterstock pays out 72.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Shutterstock has increased its dividend for 6 consecutive years. Shutterstock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

15.0% of RELX shares are held by institutional investors. Comparatively, 82.8% of Shutterstock shares are held by institutional investors. 0.0% of RELX shares are held by insiders. Comparatively, 32.0% of Shutterstock shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RELX	N/A	N/A	N/A
Shutterstock	6.36%	18.42%	7.48%

Valuation and Earnings

This table compares RELX 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
RELX	$12.06 billion	7.15	$2.47 billion	$1.86	25.29
Shutterstock	$935.26 million	0.80	$35.93 million	$1.81	11.61

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

About RELX

RELX Plc engages in provision of information and analytics solutions for professional and business customers across industries. It operates through the following business segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. The Scientific, Technical & Medical segment is a global information analytics business that helps institutions and professionals advance healthcare, open science, and improve performance for the benefit of humanity. The Risk & Business Analytics segment provides customers with solutions and decision tools that combine public and industry specific content with advanced technology and analytics to assist them in evaluating and predicting risk and enhancing operational efficiency. The Legal segment is a global provider of legal, regulatory and business information and analytics that helps customers increase productivity, improve decision-making and outcomes and advance the rule of law around the world. The Exhibitions segment is an event business, enhancing the effect of face-to-face through data and digital tools. The company was founded by Albert Edward Reed in 1903 and is headquartered in London, the United Kingdom.

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.