Critical Comparison: Electronic Arts (NASDAQ:EA) and Sprinklr (NYSE:CXM)

Sprinklr (NYSE:CXM) and Electronic Arts (NASDAQ:EA) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Volatility and Risk

Sprinklr has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sprinklr and Electronic Arts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$773.70 million	2.49	$51.40 million	$0.21	34.57
Electronic Arts	$7.30 billion	5.26	$1.27 billion	$4.68	30.84

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sprinklr and Electronic Arts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	1	8	4	0	2.23
Electronic Arts	0	9	10	1	2.60

Sprinklr presently has a consensus price target of $10.00, suggesting a potential upside of 37.74%. Electronic Arts has a consensus price target of $161.94, suggesting a potential upside of 12.19%. Given Sprinklr’s higher probable upside, equities research analysts clearly believe Sprinklr is more favorable than Electronic Arts.

Profitability

This table compares Sprinklr and Electronic Arts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	6.54%	8.40%	4.60%
Electronic Arts	15.77%	16.34%	9.28%

Insider and Institutional Ownership

40.2% of Sprinklr shares are owned by institutional investors. Comparatively, 90.2% of Electronic Arts shares are owned by institutional investors. 30.1% of Sprinklr shares are owned by company insiders. Comparatively, 0.2% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Electronic Arts beats Sprinklr on 12 of the 15 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 Electronic Arts

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.