Head-to-head survey: Sprout Social (SPT) and its competitors
Social Sprout (NASDAQ: SPT – Get a rating) is one of 413 public companies in the “pre-packaged software” sector, but how does it differ from its peers? We will compare Sprout Social to similar companies based on strength of institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Insider and Institutional Ownership
83.3% of Sprout Social shares are held by institutional investors. By comparison, 60.8% of the shares of all “pre-packaged software” companies are held by institutional investors. 13.3% of Sprout Social stock is held by company insiders. By comparison, 18.7% of the shares of all “pre-packaged software” companies are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Sprout Social and its peers.
|Net margins||Return on equity||return on assets|
|Sprouting social competitors||-30.95%||-63.02%||-7.52%|
Risk and Volatility
Sprout Social has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. In comparison, Sprout Social’s peers have a beta of -9.99, suggesting that their average price is 1099% less volatile than the S&P 500. .
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Sprout Social and its peers.
|Gross revenue||Net revenue||Price/earnings ratio|
|Social Sprout||$187.86 million||-$28.70 million||-92.32|
|Sprouting social competitors||$1.72 billion||$247.97 million||-38,129.99|
Sprout Social peers have higher earnings and income than Sprout Social. Sprout Social trades at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent ratings and recommendations for Sprout Social and its peers, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Sprouting social competitors||1603||11009||23789||520||2.63|
Sprout Social currently has a consensus price target of $98.60, suggesting a potential upside of 81.02%. As a group, “pre-packaged software” companies have an upside potential of 62.56%. Given Sprout Social’s stronger consensus rating and higher possible upside, research analysts clearly believe that Sprout Social is more favorable than its peers.
Sprout Social beats its peers on 8 of the 13 factors compared.
Sprout Social Enterprise Profile (Get a rating)
Sprout Social, Inc. designs, develops and operates a web-based social media management platform in the Americas, Europe, Middle East, Africa and Asia-Pacific. It provides cloud-based software that brings together social messaging, data, and workflows into a unified system of record, intelligence, and action. The company offers various integrated tools across a range of functions including social engagement/response, publishing, reporting and analysis, social listening and business intelligence, reputation management, employee advocacy , automation and workflows. Its tools serve a range of use cases within its customers’ organizations, including social and community management, public relations, marketing, customer service and support, commerce, sales and marketing. customer acquisition, recruiting and hiring, product development and business strategy. The company also offers professional services, which mainly consist of consulting and training services. It serves approximately more than 31,000 customers in small and medium-sized businesses, mid-sized businesses, corporations, marketing agencies, governments, non-profit organizations and educational institutions. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.
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