Contrasting The9 (NASDAQ:NCTY) and Shutterstock (NYSE:SSTK)

The9 (NASDAQ:NCTY) and Shutterstock (NYSE:SSTK) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares The9 and Shutterstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
Shutterstock	6.36%	18.42%	7.48%

Institutional & Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 82.8% of Shutterstock shares are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 32.0% of Shutterstock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for The9 and Shutterstock, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
Shutterstock	0	4	1	0	2.20

Shutterstock has a consensus price target of $43.67, indicating a potential upside of 70.17%. Given Shutterstock’s stronger consensus rating and higher probable upside, analysts plainly believe Shutterstock is more favorable than The9.

Risk and Volatility

The9 has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares The9 and Shutterstock”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$15.31 million	6.93	-$10.06 million	N/A	N/A
Shutterstock	$935.26 million	0.97	$35.93 million	$1.81	14.18

Shutterstock has higher revenue and earnings than The9.

Summary

Shutterstock beats The9 on 10 of the 12 factors compared between the two stocks.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.

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.