Zeta Global (NYSE:ZETA) and Sprinklr (NYSE:CXM) Financial Contrast

Sprinklr (NYSE:CXM) and Zeta Global (NYSE:ZETA) are both mid-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sprinklr and Zeta Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	2	8	3	0	2.08
Zeta Global	0	4	11	0	2.73

Sprinklr currently has a consensus price target of $10.25, suggesting a potential upside of 22.81%. Zeta Global has a consensus price target of $30.36, suggesting a potential upside of 97.05%. Given Zeta Global’s stronger consensus rating and higher probable upside, analysts plainly believe Zeta Global is more favorable than Sprinklr.

Valuation & Earnings

This table compares Sprinklr and Zeta Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$796.39 million	2.71	$121.61 million	$0.41	20.36
Zeta Global	$1.01 billion	3.61	-$69.77 million	($0.29)	-53.12

Sprinklr has higher earnings, but lower revenue than Zeta Global. Zeta Global 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 Zeta Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	13.57%	6.86%	3.51%
Zeta Global	-4.82%	-9.64%	-5.40%

Volatility & Risk

Sprinklr has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

40.2% of Sprinklr shares are owned by institutional investors. Comparatively, 87.8% of Zeta Global shares are owned by institutional investors. 60.5% of Sprinklr shares are owned by company insiders. Comparatively, 13.0% of Zeta Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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 Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.