Sprout Social (NASDAQ:SPT) vs. monday.com (NASDAQ:MNDY) Financial Analysis

Sprout Social (NASDAQ:SPT) and monday.com (NASDAQ:MNDY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Earnings and Valuation

This table compares Sprout Social and monday.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$375.30 million	4.04	-$66.43 million	($1.25)	-21.45
monday.com	$844.78 million	17.12	-$1.88 million	$0.38	788.45

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

Institutional & Insider Ownership

73.7% of monday.com shares are held by institutional investors. 11.0% of Sprout Social shares are held by company insiders. Comparatively, 22.3% of monday.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Sprout Social has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, monday.com has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Sprout Social and monday.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-19.60%	-44.38%	-16.53%
monday.com	4.88%	4.74%	2.97%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sprout Social and monday.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	1	6	7	0	2.43
monday.com	0	5	17	0	2.77

Sprout Social presently has a consensus price target of $48.00, suggesting a potential upside of 79.04%. monday.com has a consensus price target of $303.35, suggesting a potential upside of 1.25%. Given Sprout Social’s higher possible upside, equities research analysts plainly believe Sprout Social is more favorable than monday.com.

Summary

monday.com beats Sprout Social on 13 of the 14 factors compared between the two stocks.

About Sprout Social

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. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers integrated tools, such as social engagement/response; publishing; reporting and analytics; social listening and business intelligence; reputation management; social commerce; employee advocacy; and automation and workflows. In addition, the company provides smart inbox, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and social commerce, reputation management, employee advocacy, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. Sprout Social, Inc. was incorporated in 2010 and is headquartered in Chicago, Illinois.

About monday.com

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, the United Kingdom, and internationally. The company provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. Its products include monday work management that manages workflows, projects, and portfolios for team collaboration and productivity; monday sales CRM, whcih tracks and manages various sales cycle; monday dev that builds agile product and software development workflows; WorkCanvas, a digital whiteboard; and WorkForms, which allows users to create personalized forms or surveys and gain organizational insights. It serves organizations, educational or government institution, and distinct business unit of an organization. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in December 2017. monday.com Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.