Matterport (NASDAQ:MTTR) and Sprout Social (NASDAQ:SPT) Financial Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matterport	-164.17%	-32.22%	-28.08%
Sprout Social	-19.60%	-44.38%	-16.53%

Analyst Ratings

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

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

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

Volatility & Risk

Matterport has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Sprout Social has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matterport	$162.28 million	8.95	-$199.08 million	($0.86)	-5.29
Sprout Social	$375.30 million	4.10	-$66.43 million	($1.31)	-20.59

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.

Institutional & Insider Ownership

37.0% of Matterport shares are owned by institutional investors. 17.5% of Matterport 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 company will outperform the market over the long term.

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.

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.