Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Sprout Social, Inc. or Freshworks Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Sprout Social, Inc. and Freshworks Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Sprout Social, Inc. and Freshworks Inc.

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 AI-powered solutions, such as publishing and scheduling, social customer care, reporting and analytics, social listening and business intelligence, reputation management, social commerce, influencer marketing, predictive media intelligence, employee advocacy, and automation and workflows. In addition, the company provides smart inbox, comprehensive case management, 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 reputation and review management, 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. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company’s software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company’s Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

Latest Software and Sprout Social, Inc., Freshworks Inc. Stock News

As of September 2, 2026, Sprout Social, Inc. had a $687.1 million market capitalization, compared to the Software median of $1.0 million. Sprout Social, Inc.’s stock is down 0.2% in 2026, up 1.9% in the previous five trading days and down 25.64% in the past year.

Currently, Sprout Social, Inc. does not have a price-earnings ratio. Sprout Social, Inc.’s trailing 12-month revenue is $481.8 million with a -6.1% net profit margin. Year-over-year quarterly sales growth most recently was 10.7%. Analysts expect adjusted earnings to reach $1.128 per share for the current fiscal year. Sprout Social, Inc. does not currently pay a dividend.

As of September 2, 2026, Freshworks Inc. had a $3.4 billion market cap, putting it in the 61st percentile of all stocks. Freshworks Inc.’s stock is up 9.9% in 2026, down 1.6% in the previous five trading days and up 0.23% in the past year.

Currently, Freshworks Inc.’s price-earnings ratio is 20.2. Freshworks Inc.’s trailing 12-month revenue is $903.9 million with a 20.5% net profit margin. Year-over-year quarterly sales growth most recently was 16.0%. Analysts expect adjusted earnings to reach $0.670 per share for the current fiscal year. Freshworks Inc. does not currently pay a dividend.

How We Compare Sprout Social, Inc. and Freshworks Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Sprout Social, Inc. and Freshworks Inc.’s stock grades to see how they measure up against one another.

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Sprout Social, Inc. and Freshworks Inc. Stock Value Grades

Company	Ticker	Value
Sprout Social, Inc.	SPT	C
Freshworks Inc.	FRSH	D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Sprout Social, Inc. has a Value Score of 45, which is Average. Freshworks Inc. has a Value Score of 34, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither Sprout Social, Inc. or Freshworks Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Sprout Social, Inc. or Freshworks Inc. is the better investment when it comes to value.

Sprout Social, Inc. and Freshworks Inc.’s Quality Grades

Company	Ticker	Quality
Sprout Social, Inc.	SPT	C
Freshworks Inc.	FRSH	B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Sprout Social, Inc. has a Quality Score of 46, which is Average. Freshworks Inc. has a Quality Score of 75, which is Strong.

The Quality Grade Winner: Freshworks Inc.

As you can clearly see from the Quality Grade breakdown above, Freshworks Inc. has a better overall quality grade than Sprout Social, Inc.. For investors who are looking for companies with higher quality than others in the same industry, Freshworks Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Sprout Social, Inc. and Freshworks Inc.’s Momentum Grades

Company	Ticker	Momentum
Sprout Social, Inc.	SPT	B
Freshworks Inc.	FRSH	B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Sprout Social, Inc. has a Momentum Score of 73, which is Strong. Freshworks Inc. has a Momentum Score of 73, which is Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Sprout Social, Inc. and Freshworks Inc. have a grade of B. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Other Sprout Social, Inc. and Freshworks Inc. Grades

In addition to Momentum, Quality and Value, A+ Investor also provides grades for Growth and Estimate Revisions.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Sprout Social, Inc. and Freshworks Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Sprout Social, Inc. or Freshworks Inc. Stock?

Overall, Sprout Social, Inc. stock has a Value Score of 45, Momentum Score of 73 and Quality Score of 46.

Freshworks Inc. stock has a Value Score of 34, Momentum Score of 73 and Quality Score of 75.

Comparing Sprout Social, Inc. and Freshworks Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.