Financial Contrast: Electronic Arts (NASDAQ:EA) versus Sprinklr (NYSE:CXM)

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

Insider and Institutional Ownership

90.2% of Electronic Arts shares are owned by institutional investors. Comparatively, 40.2% of Sprinklr shares are owned by institutional investors. 0.2% of Electronic Arts shares are owned by company insiders. Comparatively, 30.1% of Sprinklr 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.

Profitability

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

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

Analyst Recommendations

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

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

Electronic Arts currently has a consensus target price of $161.94, suggesting a potential upside of 11.66%. Sprinklr has a consensus target price of $10.00, suggesting a potential upside of 37.17%. Given Sprinklr’s higher probable upside, analysts clearly believe Sprinklr is more favorable than Electronic Arts.

Valuation & Earnings

This table compares Electronic Arts and Sprinklr”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Arts	$7.30 billion	5.28	$1.27 billion	$4.68	30.99
Sprinklr	$773.70 million	2.50	$51.40 million	$0.21	34.71

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.

Volatility and Risk

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

Summary

Electronic Arts beats Sprinklr on 12 of the 15 factors compared between the two stocks.

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.

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.