Analyzing Sprout Social (NASDAQ:SPT) and Banzai International (NASDAQ:BNZI)

Sprout Social (NASDAQ:SPT) and Banzai International (NASDAQ:BNZI) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-6.13%	-8.80%	-3.64%
Banzai International	-237.54%	-391.73%	-74.14%

Valuation and Earnings

This table compares Sprout Social and Banzai International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$457.55 million	1.46	-$43.33 million	($0.45)	-24.58
Banzai International	$11.48 million	0.24	-$22.49 million	($110.47)	-0.02

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

Risk and Volatility

Sprout Social has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Banzai International has a beta of -1, suggesting that its share price is 200% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sprout Social and Banzai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	2	5	4	0	2.18
Banzai International	1	0	2	0	2.33

Sprout Social currently has a consensus price target of $12.17, suggesting a potential upside of 10.01%. Banzai International has a consensus price target of $42.00, suggesting a potential upside of 2,098.95%. Given Banzai International’s stronger consensus rating and higher probable upside, analysts clearly believe Banzai International is more favorable than Sprout Social.

Insider and Institutional Ownership

96.8% of Banzai International shares are held by institutional investors. 9.6% of Sprout Social shares are held by company insiders. Comparatively, 2.8% of Banzai International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sprout Social beats Banzai International on 9 of the 14 factors compared between the two stocks.

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.

About Banzai International

Banzai International, Inc., a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.