Synchronoss Technologies (NASDAQ:SNCR) vs. Sprout Social (NASDAQ:SPT) Financial Contrast

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

Profitability

This table compares Sprout Social and Synchronoss Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-6.13%	-8.80%	-3.64%
Synchronoss Technologies	-5.69%	24.44%	3.59%

Risk and Volatility

Sprout Social has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Synchronoss Technologies has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$457.55 million	1.26	-$43.33 million	($0.50)	-19.08
Synchronoss Technologies	$170.91 million	0.61	$6.17 million	($1.02)	-8.82

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

Analyst Ratings

This is a summary of recent recommendations for Sprout Social and Synchronoss Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	2	3	3	1	2.33
Synchronoss Technologies	1	2	0	0	1.67

Sprout Social presently has a consensus price target of $10.43, indicating a potential upside of 9.31%. Given Sprout Social’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sprout Social is more favorable than Synchronoss Technologies.

Institutional & Insider Ownership

51.7% of Synchronoss Technologies shares are owned by institutional investors. 9.6% of Sprout Social shares are owned by insiders. Comparatively, 19.9% of Synchronoss Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Synchronoss Technologies beats Sprout Social on 8 of the 15 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 Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.