Tenable (NASDAQ:TENB) & Sprout Social (NASDAQ:SPT) Head to Head Contrast

Tenable (NASDAQ:TENB) and Sprout Social (NASDAQ:SPT) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation & Earnings

This table compares Tenable and Sprout Social”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenable	$999.41 million	4.64	-$36.12 million	$0.13	324.08
Sprout Social	$457.55 million	1.46	-$43.33 million	($0.45)	-24.58

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

Insider and Institutional Ownership

89.1% of Tenable shares are owned by institutional investors. 1.7% of Tenable shares are owned by insiders. Comparatively, 9.6% 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.

Analyst Ratings

This is a breakdown of current ratings for Tenable and Sprout Social, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenable	1	11	10	0	2.41
Sprout Social	2	5	4	0	2.18

Tenable currently has a consensus price target of $46.25, suggesting a potential upside of 9.78%. Sprout Social has a consensus price target of $12.17, suggesting a potential upside of 10.01%. Given Sprout Social’s higher possible upside, analysts plainly believe Sprout Social is more favorable than Tenable.

Risk and Volatility

Tenable has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Sprout Social has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenable	1.48%	28.72%	3.19%
Sprout Social	-6.13%	-8.80%	-3.64%

Summary

Tenable beats Sprout Social on 11 of the 14 factors compared between the two stocks.

About Tenable

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable Vulnerability Management, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable Cloud Security, a cloud-native cloud security solutions for security teams to continuously assess the security posture; Tenable Identity Exposure, a solution to secure Active Directory environments; Tenable Web App Scanning, which provides scanning for modern web applications; Tenable Lumin Exposure View, a measurement tool; Tenable Attack Surface Management, an external attack surface management solution; Tenable Security Center, an on-premises solution that provides a risk-based view of an organization’s IT, security and compliance posture; and Tenable OT Security, an operational technology security solution which provides threat detection, asset tracking, vulnerability management, and configuration control capabilities. The company also offers Nessus, a vulnerability assessment solution for cybersecurity industry and enterprise platform; and Nessus Expert, that enables users to programmatically detect cloud infrastructure misconfigurations and vulnerabilities in the design and build phase. Tenable Holdings, Inc. was founded in 2002 and is headquartered in Columbia, Maryland.

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.