Sprinklr (NYSE:CXM) and Earlyworks (NASDAQ:ELWS) Critical Contrast

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

Valuation & Earnings

This table compares Sprinklr and Earlyworks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$820.77 million	2.23	$121.61 million	$0.45	16.68
Earlyworks	$3.09 million	5.10	-$1.80 million	N/A	N/A

Sprinklr has higher revenue and earnings than Earlyworks.

Volatility and Risk

Sprinklr has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Earlyworks has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Institutional & Insider Ownership

40.2% of Sprinklr shares are held by institutional investors. Comparatively, 0.5% of Earlyworks shares are held by institutional investors. 60.5% of Sprinklr shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprinklr	14.64%	8.59%	4.45%
Earlyworks	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	2	9	2	0	2.00
Earlyworks	1	0	0	0	1.00

Sprinklr currently has a consensus price target of $10.00, suggesting a potential upside of 33.24%. Given Sprinklr’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sprinklr is more favorable than Earlyworks.

Summary

Sprinklr beats Earlyworks on 10 of the 12 factors compared between the two stocks.

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.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.