Sprout Social (NASDAQ:SPT – Get Free Report) and Lottery.com (NASDAQ:LTRY – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Risk & Volatility
Sprout Social has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Lottery.com has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Profitability
This table compares Sprout Social and Lottery.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sprout Social | -19.60% | -44.38% | -16.53% |
| Lottery.com | -505.07% | -74.33% | -43.74% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sprout Social | $333.64 million | 4.85 | -$66.43 million | ($1.31) | -21.64 |
| Lottery.com | $5.72 million | 0.43 | -$25.47 million | ($9.82) | -0.05 |
Lottery.com has lower revenue, but higher earnings than Sprout Social. Sprout Social is trading at a lower price-to-earnings ratio than Lottery.com, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
7.7% of Lottery.com shares are owned by institutional investors. 11.0% of Sprout Social shares are owned by company insiders. Comparatively, 19.9% of Lottery.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Sprout Social and Lottery.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sprout Social | 1 | 6 | 7 | 0 | 2.43 |
| Lottery.com | 0 | 0 | 0 | 0 | N/A |
Sprout Social presently has a consensus target price of $48.25, suggesting a potential upside of 70.19%. Given Sprout Social’s higher possible upside, research analysts clearly believe Sprout Social is more favorable than Lottery.com.
Summary
Sprout Social beats Lottery.com on 8 of the 13 factors compared between the two stocks.
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.
About Lottery.com
Lottery.com Inc., a digital publisher, provides lottery data results, jackpots, results, and other data. The company delivers daily results of approximately 800 domestic and international lottery games from 40 countries, including the United States, Canada, and the United Kingdom to 400 digital publishers and media organizations. Lottery.com Inc. is headquartered in Spicewood, Texas.
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