Analyzing Lottery.com (NASDAQ:LTRY) and Sprout Social (NASDAQ:SPT)

Lottery.com (NASDAQ:LTRY) and Sprout Social (NASDAQ:SPT) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lottery.com	-505.07%	-74.33%	-43.74%
Sprout Social	-19.60%	-44.38%	-16.53%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lottery.com	$5.72 million	0.38	-$25.47 million	($9.82)	-0.05
Sprout Social	$333.64 million	4.59	-$66.43 million	($1.31)	-20.47

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

Risk and Volatility

Lottery.com has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Sprout Social has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lottery.com and Sprout Social, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lottery.com	0	0	0	0	N/A
Sprout Social	1	6	7	0	2.43

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

Institutional & Insider Ownership

7.7% of Lottery.com shares are owned by institutional investors. 19.9% of Lottery.com shares are owned by insiders. Comparatively, 11.0% of Sprout Social shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Sprout Social beats Lottery.com on 8 of the 13 factors compared between the two stocks.

About Lottery.com

Lottery.com Inc., a digital publisher, provides lottery data results, jackpots, results, and other data. The company delivers daily results of approximately 800 domestic and international lottery games from 40 countries, including the United States, Canada, and the United Kingdom to 400 digital publishers and media organizations. Lottery.com Inc. is headquartered in Spicewood, Texas.

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.