Critical Review: Sprinklr (NYSE:CXM) and CPI Card Group (NASDAQ:PMTS)

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

Institutional & Insider Ownership

40.2% of Sprinklr shares are held by institutional investors. Comparatively, 22.1% of CPI Card Group shares are held by institutional investors. 25.2% of Sprinklr shares are held by company insiders. Comparatively, 5.8% of CPI Card Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$871.18 million	1.57	$22.91 million	$0.12	48.62
CPI Card Group	$567.88 million	0.39	$14.95 million	$1.02	18.82

Sprinklr has higher revenue and earnings than CPI Card Group. CPI Card Group is trading at a lower price-to-earnings ratio than Sprinklr, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Sprinklr and CPI Card Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	2	4	2	0	2.00
CPI Card Group	0	2	4	0	2.67

Sprinklr presently has a consensus price target of $7.79, indicating a potential upside of 33.45%. CPI Card Group has a consensus price target of $27.50, indicating a potential upside of 43.23%. Given CPI Card Group’s stronger consensus rating and higher possible upside, analysts plainly believe CPI Card Group is more favorable than Sprinklr.

Profitability

This table compares Sprinklr and CPI Card Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	3.29%	8.13%	4.03%
CPI Card Group	2.15%	-92.16%	4.97%

Risk and Volatility

Sprinklr has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, CPI Card Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Summary

Sprinklr beats CPI Card Group on 8 of the 14 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 CPI Card Group

CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions. Its products include Europay, Mastercard, and Visa (EMV) and non-EMV financial payment cards, including contact and contactless cards, plastic and encased metal cards, and Second Wave payment cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, as well as instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, and group service providers in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is headquartered in Littleton, Colorado.