JFrog (NASDAQ:FROG) versus Sprinklr (NYSE:CXM) Critical Survey

Sprinklr (NYSE:CXM) and JFrog (NASDAQ:FROG) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

40.2% of Sprinklr shares are owned by institutional investors. Comparatively, 85.0% of JFrog shares are owned by institutional investors. 25.2% of Sprinklr shares are owned by insiders. Comparatively, 11.8% of JFrog shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$857.20 million	1.81	$22.91 million	$0.10	66.95
JFrog	$531.84 million	26.05	-$71.82 million	($0.18)	-617.69

Sprinklr has higher revenue and earnings than JFrog. JFrog 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 Sprinklr and JFrog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	2.65%	7.21%	3.56%
JFrog	-3.29%	-1.55%	-1.00%

Analyst Ratings

This is a summary of current ratings and price targets for Sprinklr and JFrog, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	0	4	3	0	2.43
JFrog	1	2	20	0	2.83

Sprinklr currently has a consensus target price of $8.21, suggesting a potential upside of 22.69%. JFrog has a consensus target price of $113.10, suggesting a potential upside of 1.72%. Given Sprinklr’s higher probable upside, analysts clearly believe Sprinklr is more favorable than JFrog.

Risk & Volatility

Sprinklr has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, JFrog has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Summary

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

About Sprinklr

Sprinklr, Inc. develops customer experience management software for businesses. Its cloud-based platform brings together tools for managing customer interactions across digital channels, including social media, messaging, and other online touchpoints. The company’s products support activities such as social media management, digital marketing, customer service, and customer and market insights. Sprinklr also incorporates artificial intelligence into its platform to help organizations analyze conversations and manage customer engagement.

About JFrog

JFrog Ltd. develops software delivery and supply-chain tools for organizations building and deploying applications. Its platform helps teams manage software packages and other binary artifacts throughout the development lifecycle, from creation and testing to distribution and deployment. Its products include JFrog Artifactory, a repository manager for storing and managing software artifacts, and JFrog Xray, which scans software components for security vulnerabilities and policy issues. The broader platform also offers tools for continuous integration and delivery, software distribution, and software supply-chain security, and can be deployed in cloud, on-premises, or hybrid environments.