Financial Analysis: Data Storage (NASDAQ:DTST) vs. Shutterstock (NYSE:SSTK)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data Storage	$25.14 million	1.36	$380,000.00	$0.02	244.00
Shutterstock	$902.18 million	1.22	$110.27 million	$1.02	30.85

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

Risk and Volatility

Data Storage has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Shutterstock has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

11.6% of Data Storage shares are owned by institutional investors. Comparatively, 82.8% of Shutterstock shares are owned by institutional investors. 42.2% of Data Storage shares are owned by insiders. Comparatively, 32.0% of Shutterstock shares are owned by 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 Data Storage and Shutterstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Data Storage	0.64%	0.79%	0.66%
Shutterstock	4.03%	20.39%	9.75%

Analyst Recommendations

This is a breakdown of current ratings for Data Storage and Shutterstock, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data Storage	0	0	0	0	0.00
Shutterstock	0	1	2	0	2.67

Shutterstock has a consensus target price of $53.67, indicating a potential upside of 70.53%. Given Shutterstock’s stronger consensus rating and higher possible upside, analysts plainly believe Shutterstock is more favorable than Data Storage.

Summary

Shutterstock beats Data Storage on 11 of the 14 factors compared between the two stocks.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.

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.