Financial Review: Sprinklr (NYSE:CXM) and GigaCloud Technology (NASDAQ:GCT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GigaCloud Technology	10.65%	30.74%	12.21%
Sprinklr	2.67%	7.86%	4.05%

Institutional and Insider Ownership

34.9% of GigaCloud Technology shares are held by institutional investors. Comparatively, 40.2% of Sprinklr shares are held by institutional investors. 24.7% of GigaCloud Technology shares are held by insiders. Comparatively, 60.5% of Sprinklr shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares GigaCloud Technology and Sprinklr”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaCloud Technology	$1.29 billion	1.21	$137.37 million	$3.62	11.76
Sprinklr	$857.20 million	1.68	$22.91 million	$0.09	64.94

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for GigaCloud Technology and Sprinklr, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaCloud Technology	0	0	2	1	3.33
Sprinklr	2	5	2	0	2.00

GigaCloud Technology presently has a consensus price target of $33.00, suggesting a potential downside of 22.50%. Sprinklr has a consensus price target of $8.31, suggesting a potential upside of 42.22%. Given Sprinklr’s higher probable upside, analysts clearly believe Sprinklr is more favorable than GigaCloud Technology.

Risk and Volatility

GigaCloud Technology has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Summary

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

About GigaCloud Technology

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.

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.