Sprout Social (NASDAQ:SPT – Get Rating) and Avaya (NYSE:AVYA – Get Rating) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Insider & Institutional Ownership
83.3% of Sprout Social shares are held by institutional investors. 13.3% of Sprout Social shares are held by company insiders. Comparatively, 2.5% of Avaya shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility:
Sprout Social has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Avaya has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Profitability:
This table compares Sprout Social and Avaya’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Sprout Social: | -15.69% | -21.90% | -12.44% |
| Avaya: | -0.62% | 51.82% | 3.36% |
Analyst Ratings:
This is a summary of recent ratings and price targets for Sprout Social and Avaya, as provided by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Sprout Social: | 0: | 1: | 9:00 | 0: | 2:90 |
| Avaya: | 3: | 4: | 1: | 0: | 1:75 |
Sprout Social currently has a consensus target price of $99.00, suggesting a potential upside of 68.22%. Avaya has a consensus target price of $13.78, suggesting a potential upside of 481.34%. Given Avaya’s higher possible upside, analysts clearly believe Avaya is more favorable than Sprout Social.
Valuation & Earnings:
This table compares Sprout Social and Avaya’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Sprout Social: | $187.86 million | 17.05 | -$28.70 million | ($0.59) | -99.74 |
| Avaya: | $2.97 billion | 0.07 | -$13.00 million | ($0.32) | -7:41 |
Avaya has higher revenue and earnings than Sprout Social. Sprout Social is trading at a lower price-to-earnings ratio than Avaya, indicating that it is currently the more affordable of the two stocks.
Summary:
Avaya beats Sprout Social on 9 of the 14 factors compared between the two stocks.
Sprout Social Company Profile: (Get Rating)
Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It provides cloud software that brings together social messaging, data, and workflows in a unified system of record, intelligence, and action. The company offers various integrated tools in a range of functions including social engagement/response, publishing, reporting and analytics, social listening and business intelligence, reputation management, employee advocacy, and 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 care, commerce, sales and customer acquisition, recruiting and hiring, product development, and business strategy. The company also offers professional services, which primarily consist of consulting and training services. It serves approximately more than 31,000 customers across small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.
Avaya Company Profile: (Get Rating)
Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates in two segments, Products & Solutions and Services. The Products & Solutions segment offers unified communications and collaboration (UCC), and contact center (CC) platforms, applications, and devices. It also provides Avaya OneCloud UCaaS solutions that enable organizations to provide their workers with a single application for all-channel calling, messaging, meetings, and team collaboration with the same usage as existing consumer apps; and Avaya OneCloud CCaaS solutions, which enables customers to build a customized portfolio of applications driving customer engagement and customer value, as well as offers communications solutions including voice, email, chat, social media, video, performance management, and third-party integration. These segments Avaya OneCloud CPaaS solutions combine the cloud with its communications platforms, which enables developers to integrate both UCC and CC communications capabilities directly into internal and customer-facing applications and workflows. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also offers business devices, such as IP-enabled handsets, multimedia devices, and conferencing systems. It sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company has a strategic collaboration with RingCentral, Inc. to accelerate the company’s transition to the cloud. Avaya Holdings Corp. is headquartered in Durham, North Carolina.
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