Comparing Data Storage (NASDAQ:DTST) & Sprout Social (NASDAQ:SPT)

Sprout Social (NASDAQ:SPT) and Data Storage (NASDAQ:DTST) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Institutional & Insider Ownership

11.6% of Data Storage shares are held by institutional investors. 10.1% of Sprout Social shares are held by company insiders. Comparatively, 43.8% of Data Storage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-12.70%	-25.95%	-10.67%
Data Storage	-1.17%	-1.42%	-1.19%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	0	6	6	0	2.50
Data Storage	1	0	0	0	1.00

Sprout Social presently has a consensus target price of $27.36, suggesting a potential upside of 80.62%. Given Sprout Social’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sprout Social is more favorable than Data Storage.

Volatility & Risk

Sprout Social has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Data Storage has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sprout Social and Data Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$405.91 million	2.19	-$61.97 million	($0.95)	-15.95
Data Storage	$25.37 million	1.28	$520,000.00	($0.04)	-111.50

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

Summary

Data Storage beats Sprout Social on 8 of the 14 factors compared between the two stocks.

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.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.