Sprout Social, Inc. (SPT) vs VTEX (VTEX)

Sprout Social, Inc. and VTEX are both Software Application companies. Sprout Social, Inc. and VTEX are of similar size ($605.4M and $589.4M). Sprout Social, Inc. has negative trailing earnings, so its P/E is not meaningful; VTEX trades at 21.2×. Sprout Social, Inc. grew revenue faster over the last twelve months: 11.9% against 9.63%. VTEX has the higher net margin (12.0% vs −6.13%) and the higher return on invested capital (44.9% vs −12.6%). Across the 20 metrics below, VTEX leads on 13 and Sprout Social, Inc. on 7.

Valuation

Metric SPT VTEX Software Application median
P/E n/m 21.24 24.79
P/S 1.19 2.39 2.67
P/B 2.51 2.70 3.01
Price to free cash flow 11.41 13.82 16.59
EV/EBITDA 35.20 12.34 14.40
EV/Sales 1.01 1.68 2.62
Earnings yield (5.24%) 4.71% 0.00%
Free cash flow yield 8.76% 7.23% 1.91%

Profitability

Metric SPT VTEX Software Application median
Gross margin 77.45% 79.26% 67.03%
Operating margin (5.90%) 12.23% 0.00%
Net margin (6.13%) 11.98% 0.00%
Free cash flow margin 10.45% 17.32% 4.32%
Return on equity (14.30%) 12.76% 0.00%
Return on assets (6.25%) 8.57% 0.00%
Return on invested capital (12.60%) 44.94% 0.00%

Growth

Metric SPT VTEX Software Application median
Revenue growth (TTM) 11.85% 9.63% 12.40%
EPS growth (last fiscal year) 32.11% 33.82% —
Revenue growth, 5-year CAGR 28.04% 19.51% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SPT VTEX Software Application median
Debt to equity 0.14 0.02 0.02
Current ratio 1.03 2.91 1.55
Net debt to EBITDA 8.10 (8.93) 0.06

Dividend

Metric SPT VTEX Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric SPT VTEX Software Application median
Market cap 589.35m 605.43m 396.11m

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