Xunlei (NASDAQ:XNET) vs. Sprout Social (NASDAQ:SPT) Critical Comparison

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

Valuation & Earnings

This table compares Xunlei and Sprout Social”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$324.40 million	1.72	$1.22 million	$11.38	0.79
Sprout Social	$405.91 million	1.57	-$61.97 million	($0.95)	-11.39

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xunlei	202.62%	4.50%	3.35%
Sprout Social	-12.70%	-25.95%	-10.67%

Insider & Institutional Ownership

5.1% of Xunlei shares are owned by institutional investors. 21.7% of Xunlei shares are owned by insiders. Comparatively, 10.1% of Sprout Social shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Xunlei and Sprout Social, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
Sprout Social	1	6	6	0	2.38

Sprout Social has a consensus price target of $27.36, suggesting a potential upside of 152.90%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts clearly believe Sprout Social is more favorable than Xunlei.

Risk and Volatility

Xunlei has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Sprout Social has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Summary

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

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, 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.