Critical Analysis: Cricut (NASDAQ:CRCT) versus Sprinklr (NYSE:CXM)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Sprinklr and Cricut, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprinklr	3	4	2	0	1.89
Cricut	4	1	0	0	1.20

Sprinklr currently has a consensus target price of $8.31, suggesting a potential upside of 36.83%. Cricut has a consensus target price of $3.67, suggesting a potential downside of 8.33%. Given Sprinklr’s stronger consensus rating and higher possible upside, analysts plainly believe Sprinklr is more favorable than Cricut.

Profitability

This table compares Sprinklr and Cricut’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%
Cricut	10.82%	20.44%	12.04%

Risk & Volatility

Sprinklr has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Cricut has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

40.2% of Sprinklr shares are owned by institutional investors. Comparatively, 19.6% of Cricut shares are owned by institutional investors. 60.5% of Sprinklr shares are owned by company insiders. Comparatively, 18.6% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sprinklr and Cricut”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprinklr	$857.20 million	1.76	$22.91 million	$0.09	67.50
Cricut	$708.78 million	1.20	$76.71 million	$0.36	11.11

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

Summary

Sprinklr beats Cricut 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 Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.