Analyzing Sprout Social (NASDAQ:SPT) & QuoteMedia (OTCMKTS:QMCI)

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

Valuation & Earnings

This table compares Sprout Social and QuoteMedia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$405.91 million	1.48	-$61.97 million	($0.95)	-10.75
QuoteMedia	$18.74 million	0.82	-$1.33 million	($0.03)	-5.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-12.70%	-25.95%	-10.67%
QuoteMedia	-12.55%	N/A	-33.71%

Risk & Volatility

Sprout Social has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, QuoteMedia has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	1	6	6	0	2.38
QuoteMedia	0	0	0	0	0.00

Sprout Social currently has a consensus target price of $27.36, suggesting a potential upside of 168.01%. Given Sprout Social’s stronger consensus rating and higher possible upside, analysts clearly believe Sprout Social is more favorable than QuoteMedia.

Summary

Sprout Social beats QuoteMedia on 7 of the 12 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 QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.