Contrasting ZIX (ZIXI) and Shutterstock (SSTK)

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

Earnings & Valuation

This table compares ZIX and Shutterstock’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ZIX $70.48 million 8.28 $15.44 million $0.32 32.78
Shutterstock $623.25 million 2.25 $54.69 million $1.05 37.98

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

Risk and Volatility

ZIX has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for ZIX and Shutterstock, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ZIX 0 0 2 0 3.00
Shutterstock 1 2 0 0 1.67

ZIX currently has a consensus target price of $12.00, suggesting a potential upside of 14.39%. Shutterstock has a consensus target price of $41.00, suggesting a potential upside of 2.81%. Given ZIX’s stronger consensus rating and higher possible upside, equities analysts plainly believe ZIX is more favorable than Shutterstock.

Insider and Institutional Ownership

73.9% of ZIX shares are owned by institutional investors. Comparatively, 56.4% of Shutterstock shares are owned by institutional investors. 3.7% of ZIX shares are owned by company insiders. Comparatively, 46.8% of Shutterstock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
ZIX 8.75% 20.13% 11.34%
Shutterstock 4.68% 12.99% 7.06%

Summary

ZIX beats Shutterstock on 8 of the 14 factors compared between the two stocks.

About ZIX

Zix Corporation provides email encryption, data loss prevention (DLP), threat protection, archiving, and bring-your-own-device mobile security solutions for the healthcare, financial services, insurance, and government sectors primarily in the United States. The company offers ZixEncrypt that bundles email encryption and DLP capabilities to enable the secure exchange of email; ZixProtect, a cloud-based service that defends organizations from zero-day malware, ransomware, phishing, CEO fraud, W-2 phishing attacks, spam, and viruses in email; and ZixArchive, a cloud-based email retention solution that enables user retrieval, compliance, and e-discovery. It also provides ZixOne, a mobile email app, which offers mobile access to corporate email and does not allow data to be persistently stored on employee's device. Zix Corporation sells its services through a direct sales force; and a network of resellers and other distribution partners. The company was formerly known as ZixIt Corporation and changed its name to Zix Corporation in 2002. Zix Corporation was incorporated in 1988 and is headquartered in Dallas, Texas.

About Shutterstock

Shutterstock, Inc. provides digital content, and tools and services in North America, Europe, and internationally. It offers digital imagery services that include licensed photographs, vectors, illustrations, and video clips, which is used in visual communications, such as Websites, digital and print marketing materials, corporate communications, books, publications, and video content; and music services comprising music tracks and sound effects that are used to complement digital imagery. The company provides its services under the Shutterstock, Bigstock, Offset, Shutterstock Select, Shutterstock Custom, Shutterstock Editorial, and Shutterstock Music names, as well as Superior search, Application programming interface, Showcase, and Editor and Editor Pro tools to enhance workflow and project management needs, and search capabilities. It serves marketing professionals and organizations, media and broadcast companies, and small and medium-sized businesses through online platform. Shutterstock, Inc. was founded in 2003 and is headquartered in New York, New York.

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