Sprout Social vs HubSpot Which Is Superior?

Sprout Social and HubSpot are two leading companies in the digital marketing and social media management industry. Both companies have experienced significant growth in recent years, with their stocks gaining attention from investors. Sprout Social focuses on providing social media management tools for businesses, while HubSpot offers a comprehensive marketing automation platform. Investors are closely watching the performance of both companies to determine which stock offers the best long-term value and growth potential.

Sprout Social or HubSpot?

When comparing Sprout Social and HubSpot, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Sprout Social and HubSpot.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Sprout Social has a dividend yield of -%, while HubSpot has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sprout Social reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HubSpot reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Sprout Social P/E ratio at -28.69 and HubSpot's P/E ratio at -2655.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sprout Social P/B ratio is 12.27 while HubSpot's P/B ratio is 21.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sprout Social has seen a 5-year revenue growth of 0.26%, while HubSpot's is 2.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sprout Social's ROE at -44.96% and HubSpot's ROE at -0.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.74 for Sprout Social and $721.21 for HubSpot. Over the past year, Sprout Social's prices ranged from $25.05 to $68.41, with a yearly change of 173.06%. HubSpot's prices fluctuated between $434.84 and $762.47, with a yearly change of 75.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.