Head-To-Head Review: Sprout Social (NASDAQ:SPT) versus Logility Supply Chain Solutions (NASDAQ:LGTY)

Logility Supply Chain Solutions (NASDAQ:LGTY) and Sprout Social (NASDAQ:SPT) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

77.0% of Logility Supply Chain Solutions shares are held by institutional investors. 11.4% of Logility Supply Chain Solutions shares are held by insiders. Comparatively, 11.0% of Sprout Social shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings for Logility Supply Chain Solutions and Sprout Social, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logility Supply Chain Solutions	0	2	0	0	2.00
Sprout Social	1	7	7	0	2.40

Sprout Social has a consensus target price of $32.77, indicating a potential upside of 66.85%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts plainly believe Sprout Social is more favorable than Logility Supply Chain Solutions.

Earnings and Valuation

This table compares Logility Supply Chain Solutions and Sprout Social”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Logility Supply Chain Solutions	$101.87 million	4.73	$11.37 million	($0.01)	-1,429.00
Sprout Social	$405.91 million	2.79	-$66.43 million	($1.09)	-18.02

Logility Supply Chain Solutions has higher earnings, but lower revenue than Sprout Social. Logility Supply Chain Solutions is trading at a lower price-to-earnings ratio than Sprout Social, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Logility Supply Chain Solutions has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Sprout Social has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Logility Supply Chain Solutions and Sprout Social’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logility Supply Chain Solutions	-0.54%	5.52%	3.89%
Sprout Social	-17.24%	-40.94%	-15.70%

Summary

Logility Supply Chain Solutions beats Sprout Social on 8 of the 14 factors compared between the two stocks.

About Logility Supply Chain Solutions

Logility Supply Chain Solutions Inc. is a provider of AI-first supply chain management solutions engineered to help organizations build sustainable digital supply chains. Logility Supply Chain Solutions Inc., formerly known as American Software Inc., is based in ATLANTA.

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.