Block (NYSE:SQ) & Sprinklr (NYSE:CXM) Financial Contrast

Block (NYSE:SQGet Rating) and Sprinklr (NYSE:CXMGet Rating) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

59.5% of Block shares are owned by institutional investors. Comparatively, 25.8% of Sprinklr shares are owned by institutional investors. 11.5% of Block shares are owned by insiders. Comparatively, 43.8% of Sprinklr shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Block and Sprinklr, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Block 2 6 22 0 2.67
Sprinklr 0 5 5 0 2.50

Block currently has a consensus price target of $105.03, indicating a potential upside of 81.83%. Sprinklr has a consensus price target of $12.50, indicating a potential upside of 7.02%. Given Block’s stronger consensus rating and higher probable upside, analysts clearly believe Block is more favorable than Sprinklr.

Volatility and Risk

Block has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Block and Sprinklr’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Block $17.53 billion 1.98 -$540.75 million ($0.95) -60.80
Sprinklr $618.19 million 5.02 -$55.74 million ($0.21) -55.62

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

Profitability

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

Net Margins Return on Equity Return on Assets
Block -3.11% -2.28% -1.31%
Sprinklr -9.02% -10.62% -5.92%

Summary

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

About Block

(Get Rating)

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Sprinklr

(Get Rating)

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company offers Unified Customer Experience Management platform, a purpose-built to analyze unstructured customer experience data, built to scale across future and modern channels, and integrates all stages of the customer journey. Its products include Modern Research that enables its customers to listen, learn from, and act on insights gleaned from modern channels; Modern Care that enables brands to listen to, route, resolve and analyze customer service issues across modern and traditional channels; Modern Marketing and Advertising enables global brands to plan, create, publish, optimize, and analyze their organic/owned marketing content and paid advertising campaigns across modern channels; and Social Engagement and Sales allows customers listen to, triage, engage, and analyze conversations across modern 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.

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