Financial Contrast: HeartCore Enterprises (NASDAQ:HTCR) vs. Sprout Social (NASDAQ:SPT)
by Kim Johansen · The Markets DailyHeartCore Enterprises (NASDAQ:HTCR – Get Free Report) and Sprout Social (NASDAQ:SPT – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Risk & Volatility
HeartCore Enterprises has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Sprout Social has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Institutional & Insider Ownership
1.7% of HeartCore Enterprises shares are held by institutional investors. 36.1% of HeartCore Enterprises shares are held by insiders. Comparatively, 9.6% of Sprout Social shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares HeartCore Enterprises 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 | |
| HeartCore Enterprises | $8.97 million | 0.25 | $5.79 million | ($4.21) | -0.35 |
| Sprout Social | $457.55 million | 1.60 | -$43.33 million | ($0.50) | -24.10 |
HeartCore Enterprises has higher earnings, but lower revenue than Sprout Social. Sprout Social is trading at a lower price-to-earnings ratio than HeartCore Enterprises, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HeartCore Enterprises and Sprout Social’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HeartCore Enterprises | 15.42% | -138.90% | -53.97% |
| Sprout Social | -6.13% | -8.80% | -3.64% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for HeartCore Enterprises and Sprout Social, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HeartCore Enterprises | 1 | 0 | 0 | 0 | 1.00 |
| Sprout Social | 2 | 4 | 4 | 0 | 2.20 |
Sprout Social has a consensus target price of $10.88, suggesting a potential downside of 9.75%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts plainly believe Sprout Social is more favorable than HeartCore Enterprises.
Summary
Sprout Social beats HeartCore Enterprises on 8 of the 14 factors compared between the two stocks.
About HeartCore Enterprises
HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.
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.