Critical Contrast: Sprout Social (NASDAQ:SPT) versus Matterport (NASDAQ:MTTR)

Sprout Social (NASDAQ:SPT) and Matterport (NASDAQ:MTTR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$333.64 million	4.61	-$66.43 million	($1.31)	-20.59
Matterport	$157.75 million	9.20	-$199.08 million	($0.86)	-5.29

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

Profitability

This table compares Sprout Social and Matterport’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%
Matterport	-164.17%	-32.22%	-28.08%

Analyst Ratings

This is a summary of current ratings and recommmendations for Sprout Social and Matterport, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	1	6	7	0	2.43
Matterport	0	6	0	0	2.00

Sprout Social presently has a consensus price target of $48.00, suggesting a potential upside of 77.98%. Matterport has a consensus price target of $4.70, suggesting a potential upside of 3.30%. Given Sprout Social’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sprout Social is more favorable than Matterport.

Institutional and Insider Ownership

37.0% of Matterport shares are owned by institutional investors. 11.0% of Sprout Social shares are owned by company insiders. Comparatively, 17.5% of Matterport shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Sprout Social has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Matterport has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

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 Matterport

Matterport, Inc., a spatial data company, focuses on digitization and datafication in the United States and internationally. The company offers Matterport Capture Services, a fully managed solution for enterprise subscribers; Matterport Pro3, a 3D camera that scans properties; Matterport Pro2, a 3D camera that captures spaces; LEICA BLK360, a device to create digital twins; Smartphone Capture, a smartphone capture solution for both iOS and Android; and 360 Cameras. It also provides Matterport Axis, a motor-mount accessory for smartphone. The company serves its products in residential and commercial real estate, facilities management and retail, AEC, insurance and repair, and travel and hospitality markets. Matterport, Inc. is headquartered in Sunnyvale, California.