Sprout Social (NASDAQ:SPT) and Senmiao Technology (NASDAQ:AIHS) Critical Contrast

Senmiao Technology (NASDAQ:AIHS) and Sprout Social (NASDAQ:SPT) 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 risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares Senmiao Technology and Sprout Social’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Senmiao Technology	-88.60%	-454.33%	-55.52%
Sprout Social	-10.59%	-18.93%	-7.76%

Risk & Volatility

Senmiao Technology has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Sprout Social has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of Senmiao Technology shares are held by institutional investors. 2.3% of Senmiao Technology shares are held by company insiders. Comparatively, 10.1% of Sprout Social shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Senmiao Technology and Sprout Social”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senmiao Technology	$3.39 million	0.42	-$3.72 million	($1.08)	-1.19
Sprout Social	$405.91 million	1.45	-$61.97 million	($0.81)	-12.30

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

Analyst Recommendations

This is a summary of current ratings and price targets for Senmiao Technology and Sprout Social, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senmiao Technology	1	0	0	0	1.00
Sprout Social	1	6	6	0	2.38

Sprout Social has a consensus target price of $25.82, suggesting a potential upside of 159.09%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts clearly believe Sprout Social is more favorable than Senmiao Technology.

Summary

Sprout Social beats Senmiao Technology on 10 of the 14 factors compared between the two stocks.

About Senmiao Technology

Senmiao Technology Limited engages in the automobile transaction and related services business in the People's Republic of China. It operates through two segments, Automobile Transaction and Related Services, and Online Ride-Hailing Platform Services. The company offers car rental services to individual customers; and auto finance solutions through financing leases. It also engages in automobile sales comprising sale of new purchased or used cars; and the provision of supporting services, as well as auto management and guarantee services provided to online ride-hailing drivers. In addition, the company provides new energy vehicles leasing, automobile purchase, and management services, such as ride-hailing driver training, assisting with a series of administrative procedures, and other consulting services, as well as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installation of GPS devices, ride-hailing driver qualification, and other administrative procedures. Further, it operates Xixingtianxia, an online ride-hailing platform that enables qualified ride-hailing drivers to provide transportation services mainly in Chengdu, Changsha, Guangzhou, and other 23 cities in China. The company was founded in 2014 and is based in Chengdu, the People's Republic of China.

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.