Reviewing Sprout Social (NASDAQ:SPT) & Logility Supply Chain Solutions (NASDAQ:LGTY)

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

Insider and Institutional Ownership

77.0% of Logility Supply Chain Solutions shares are owned by institutional investors. 11.4% of Logility Supply Chain Solutions shares are owned by company insiders. Comparatively, 11.0% of Sprout Social shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Logility Supply Chain Solutions has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Sprout Social has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Logility Supply Chain Solutions 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
Logility Supply Chain Solutions	$101.87 million	4.73	$11.37 million	($0.01)	-1,429.00
Sprout Social	$405.91 million	2.74	-$66.43 million	($1.09)	-17.67

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

Profitability

This table compares Logility Supply Chain Solutions and Sprout Social’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logility Supply Chain Solutions	-0.54%	5.52%	3.89%
Sprout Social	-17.24%	-40.94%	-15.70%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logility Supply Chain Solutions	0	2	0	0	2.00
Sprout Social	1	7	7	0	2.40

Sprout Social has a consensus price target of $33.85, suggesting a potential upside of 75.73%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts plainly believe Sprout Social is more favorable than Logility Supply Chain Solutions.

Summary

Logility Supply Chain Solutions beats Sprout Social on 8 of the 14 factors compared between the two stocks.

About Logility Supply Chain Solutions

Logility Supply Chain Solutions Inc. is a provider of AI-first supply chain management solutions engineered to help organizations build sustainable digital supply chains. Logility Supply Chain Solutions Inc., formerly known as American Software Inc., is based in ATLANTA.

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.