Getty Images (NYSE:GETY – Get Free Report) and Steel Connect (NASDAQ:STCN – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Getty Images and Steel Connect, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Getty Images | 1 | 1 | 3 | 0 | 2.40 |
| Steel Connect | 0 | 0 | 0 | 0 | 0.00 |
Getty Images presently has a consensus target price of $5.61, suggesting a potential upside of 146.16%. Given Getty Images’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Getty Images is more favorable than Steel Connect.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Getty Images | $917.90 million | 1.02 | $19.34 million | $0.12 | 19.00 |
| Steel Connect | $183.26 million | 0.43 | $87.98 million | $2.99 | 4.18 |
Steel Connect has lower revenue, but higher earnings than Getty Images. Steel Connect is trading at a lower price-to-earnings ratio than Getty Images, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
45.8% of Getty Images shares are held by institutional investors. Comparatively, 47.3% of Steel Connect shares are held by institutional investors. 12.3% of Getty Images shares are held by company insiders. Comparatively, 8.7% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Getty Images and Steel Connect’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Getty Images | 5.91% | 6.42% | 1.74% |
| Steel Connect | 50.53% | 14.59% | 3.67% |
Risk and Volatility
Getty Images has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Steel Connect has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.
Summary
Getty Images beats Steel Connect on 8 of the 14 factors compared between the two stocks.
About Getty Images
Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.
About Steel Connect
Steel Connect, Inc., together with its subsidiaries, provides supply chain services in the United States, Mainland China, Netherlands, and internationally. It offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. The company provides fulfillment services comprising order management, pick, pack and ship, retail compliance, and demand planning services; and reverse logistics services that simplifies the returns process for retailers and manufacturers, as well as operates a cloud-based e-commerce platform. In addition, it offers warehousing and inventory management services; and software licenses, maintenance, and support services. Further, the company offers its supply chain services to customers in the consumer electronics, communications, computing, medical devices, software, and retail markets. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in New York, New York.
Receive News & Ratings for Getty Images Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Getty Images and related companies with MarketBeat.com's FREE daily email newsletter.
