Critical Survey: GigaCloud Technology (NASDAQ:GCT) vs. Sprinklr (NYSE:CXM)

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

Profitability

This table compares Sprinklr and GigaCloud Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprinklr	2.67%	7.86%	4.05%
GigaCloud Technology	10.65%	30.74%	12.21%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sprinklr and GigaCloud Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	2	5	2	0	2.00
GigaCloud Technology	0	0	2	1	3.33

Sprinklr currently has a consensus price target of $8.31, suggesting a potential upside of 41.49%. GigaCloud Technology has a consensus price target of $33.00, suggesting a potential downside of 20.65%. Given Sprinklr’s higher probable upside, equities research analysts clearly believe Sprinklr is more favorable than GigaCloud Technology.

Institutional & Insider Ownership

40.2% of Sprinklr shares are held by institutional investors. Comparatively, 34.9% of GigaCloud Technology shares are held by institutional investors. 60.5% of Sprinklr shares are held by insiders. Comparatively, 24.7% of GigaCloud Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sprinklr and GigaCloud Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$857.20 million	1.71	$22.91 million	$0.09	65.28
GigaCloud Technology	$1.29 billion	1.18	$137.37 million	$3.62	11.49

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

Risk and Volatility

Sprinklr has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, GigaCloud Technology has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500.

Summary

GigaCloud Technology beats Sprinklr on 9 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 GigaCloud Technology

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.