Critical Comparison: Semrush (NASDAQ:SEMR) and Sprinklr (NYSE:CXM)

Sprinklr (NYSE:CXM) and Semrush (NASDAQ:SEMR) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Sprinklr and Semrush’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	6.54%	8.40%	4.60%
Semrush	4.39%	6.61%	4.42%

Risk & Volatility

Sprinklr has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Semrush has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Insider and Institutional Ownership

40.2% of Sprinklr shares are owned by institutional investors. Comparatively, 32.9% of Semrush shares are owned by institutional investors. 30.1% of Sprinklr shares are owned by insiders. Comparatively, 57.8% of Semrush shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Sprinklr and Semrush, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	0	8	5	0	2.38
Semrush	0	3	3	0	2.50

Sprinklr currently has a consensus target price of $10.30, indicating a potential upside of 37.88%. Semrush has a consensus target price of $14.33, indicating a potential upside of 7.53%. Given Sprinklr’s higher probable upside, equities research analysts plainly believe Sprinklr is more favorable than Semrush.

Earnings & Valuation

This table compares Sprinklr and Semrush’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$732.36 million	2.71	$51.40 million	$0.21	35.57
Semrush	$338.88 million	5.71	$950,000.00	$0.09	148.11

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

Summary

Sprinklr beats Semrush on 9 of the 14 factors compared between the two stocks.

About Sprinklr

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company operates Unified Customer Experience Management platform, a software that enables customer-facing teams to collaborate across internal silos, communicate across digital channels, and leverage a complete suite of capabilities to deliver customer experiences. Its products include Sprinklr Service, a suite of artificial intelligence (AI) powered products and solutions that unifies customer service across voice, digital, and social channels; Sprinklr Social, a suite of AI-powered products and solutions that unifies social media publishing and engagement across various channels; Sprinklr Insights, a suite of AI-powered products and solutions that unifies consumer, customer, competitive and industry data from a high volume of third-party, second-party and first-party sources; and Sprinklr Marketing, a suite of AI-powered products and solutions that unifies content production and content lifecycle management with paid campaign orchestration across various channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.