Critical Analysis: Expensify (NASDAQ:EXFY) and Sprinklr (NYSE:CXM)

Expensify (NASDAQ:EXFY) and Sprinklr (NYSE:CXM) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

68.4% of Expensify shares are owned by institutional investors. Comparatively, 40.2% of Sprinklr shares are owned by institutional investors. 11.7% of Expensify shares are owned by insiders. Comparatively, 25.2% of Sprinklr shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Expensify has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Expensify	-11.31%	-11.54%	-8.34%
Sprinklr	2.65%	7.21%	3.56%

Analyst Ratings

This is a breakdown of recent ratings for Expensify and Sprinklr, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	1	0	2	0	2.33
Sprinklr	0	4	3	0	2.43

Expensify presently has a consensus price target of $3.00, suggesting a potential upside of 29.59%. Sprinklr has a consensus price target of $8.21, suggesting a potential upside of 20.71%. Given Expensify’s higher probable upside, analysts clearly believe Expensify is more favorable than Sprinklr.

Valuation & Earnings

This table compares Expensify and Sprinklr”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$142.10 million	1.29	-$21.39 million	($0.17)	-13.62
Sprinklr	$857.20 million	1.84	$22.91 million	$0.10	68.05

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

Summary

Sprinklr beats Expensify on 11 of the 14 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

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.