Head-To-Head Contrast: PCCW (OTCMKTS:PCCWY) vs. Sprout Social (NASDAQ:SPT)

PCCW (OTCMKTS:PCCWY) and Sprout Social (NASDAQ:SPT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Risk and Volatility

PCCW has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Sprout Social has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a summary of current ratings for PCCW and Sprout Social, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCCW	0	0	0	0	0.00
Sprout Social	2	5	4	0	2.18

Sprout Social has a consensus target price of $13.11, suggesting a potential upside of 118.52%. Given Sprout Social’s stronger consensus rating and higher probable upside, analysts plainly believe Sprout Social is more favorable than PCCW.

Earnings & Valuation

This table compares PCCW and Sprout Social”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCCW	$5.16 billion	1.15	-$32.45 million	N/A	N/A
Sprout Social	$457.55 million	0.78	-$43.33 million	($0.74)	-8.11

PCCW has higher revenue and earnings than Sprout Social.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PCCW	N/A	N/A	N/A
Sprout Social	-9.47%	-16.10%	-6.58%

Summary

PCCW beats Sprout Social on 6 of the 10 factors compared between the two stocks.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company's services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

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.