Comprehensive Stock Comparison
Compare Sprinklr, Inc. (CXM) vs Freshworks Inc. (FRSH) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FRSH | 20.8% revenue growth vs CXM's 8.7% |
| Value | CXM | Lower P/E (12.8x vs 13.7x) |
| Quality / Margins | FRSH | 21.9% net margin vs CXM's 13.4% |
| Stability / Safety | CXM | Beta 1.08 vs FRSH's 1.31 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | CXM | -31.3% vs FRSH's -54.2% |
| Efficiency (ROA) | FRSH | 11.5% ROA vs CXM's 10.7%, ROIC -17.8% vs 3.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Sprinklr provides an enterprise cloud platform for unified customer experience management across digital channels. It generates revenue primarily through subscription fees for its software platform — which includes modules for customer care, marketing, advertising, and social engagement — with professional services contributing a smaller portion. The company's competitive advantage lies in its comprehensive, AI-powered platform that integrates customer data from numerous digital channels into a single system of record, creating switching costs for large enterprise clients.
Freshworks provides cloud-based customer engagement software for businesses of all sizes. It generates revenue primarily through subscription fees for its suite of products — including Freshdesk for customer support (~40% of revenue), Freshsales for CRM (~30%), and other tools for marketing and IT service management. The company's key advantage is its unified, user-friendly platform that integrates multiple business functions, allowing customers to avoid the complexity of managing separate point solutions from different vendors.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FRSH leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). CXM leads in 2 (Total Returns, Risk & Volatility).
Financial Metrics (TTM)
CXM and FRSH operate at a comparable scale, with $839M and $839M in trailing revenue. FRSH is the more profitable business, keeping 21.9% of every revenue dollar as net income compared to CXM's 13.4%. On growth, FRSH holds the edge at +14.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| RevenueTrailing 12 months | $839M | $839M |
| EBITDAEarnings before interest/tax | $47M | $30M |
| Net IncomeAfter-tax profit | $113M | $184M |
| Free Cash FlowCash after capex | $139M | $232M |
| Gross MarginGross profit ÷ Revenue | +68.7% | +85.0% |
| Operating MarginEBIT ÷ Revenue | +4.4% | +1.6% |
| Net MarginNet income ÷ Revenue | +13.4% | +21.9% |
| FCF MarginFCF ÷ Revenue | +16.6% | +27.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.2% | +14.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -71.2% | +10.3% |
Valuation Metrics
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Market CapShares × price | $1.4B | $2.4B |
| Enterprise ValueMkt cap + debt − cash | $1.3B | $1.8B |
| Trailing P/EPrice ÷ TTM EPS | 13.23x | -24.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.83x | 13.75x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 31.28x | — |
| Price / SalesMarket cap ÷ Revenue | 1.80x | 3.29x |
| Price / BookPrice ÷ Book value/share | 2.61x | 2.07x |
| Price / FCFMarket cap ÷ FCF | 19.93x | 16.25x |
Profitability & Efficiency
CXM delivers a 20.2% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $18 for FRSH. FRSH carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to CXM's 0.08x.
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +20.2% | +17.8% |
| ROA (TTM)Return on assets | +10.7% | +11.5% |
| ROICReturn on invested capital | +3.4% | -17.8% |
| ROCEReturn on capital employed | +3.5% | -11.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.08x | 0.03x |
| Net DebtTotal debt minus cash | -$97M | -$582M |
| Cash & Equiv.Liquid assets | $145M | $620M |
| Total DebtShort + long-term debt | $49M | $38M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in CXM five years ago would be worth $3,307 today (with dividends reinvested), compared to $1,645 for FRSH. Over the past 12 months, CXM leads with a -31.3% total return vs FRSH's -54.2%. The 3-year compound annual growth rate (CAGR) favors CXM at -18.7% vs FRSH's -19.4% — a key indicator of consistent wealth creation.
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -20.5% | -32.6% |
| 1-Year ReturnPast 12 months | -31.3% | -54.2% |
| 3-Year ReturnCumulative with dividends | -46.4% | -47.7% |
| 5-Year ReturnCumulative with dividends | -66.9% | -83.6% |
| 10-Year ReturnCumulative with dividends | -66.9% | -83.6% |
| CAGR (3Y)Annualised 3-year return | -18.7% | -19.4% |
Risk & Volatility
CXM is the less volatile stock with a 1.08 beta — it tends to amplify market swings less than FRSH's 1.31 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CXM currently trades 60.1% from its 52-week high vs FRSH's 45.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 1.31x |
| 52-Week HighHighest price in past year | $9.69 | $17.21 |
| 52-Week LowLowest price in past year | $5.12 | $6.79 |
| % of 52W HighCurrent price vs 52-week peak | +60.1% | +45.4% |
| RSI (14)Momentum oscillator 0–100 | 44.3 | 40.1 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 4.6M |
Analyst Outlook
Wall Street rates CXM as "Hold" and FRSH as "Buy". Consensus price targets imply 46.2% upside for FRSH (target: $11) vs 37.5% for CXM (target: $8).
| Metric | CXMSprinklr, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $8.00 | $11.43 |
| # AnalystsCovering analysts | 16 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +19.1% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| Sprinklr, Inc. (CXM) | 100 | 35.54 | -64.5% |
| Freshworks Inc. (FRSH) | 88.1 | 22.42 | -74.6% |
Sprinklr, Inc. (CXM) returned -67% over 5 years vs Freshworks Inc. (FRSH)'s -84%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sprinklr, Inc. (CXM) | $324M | $796M | +145.6% |
| Freshworks Inc. (FRSH) | $127M | $720M | +467.8% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sprinklr, Inc. (CXM) | -12.3% | 15.3% | +224.5% |
| Freshworks Inc. (FRSH) | 2.1% | -13.2% | -734.1% |
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sprinklr, Inc. (CXM) | -0.16 | 0.44 | +375.0% |
| Freshworks Inc. (FRSH) | 0.16 | -0.32 | -300.0% |
Chart 5Free Cash Flow — 5 Years
Sprinklr, Inc. generated $72M FCF in 2025 (+8581% vs 2021). Freshworks Inc. generated $146M FCF in 2024 (+6131% vs 2021).
CXM vs FRSH: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CXM or FRSH a better buy right now?
Sprinklr, Inc. (CXM) offers the better valuation at 13.2x trailing P/E (12.8x forward), making it the more compelling value choice. Analysts rate Freshworks Inc. (FRSH) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CXM or FRSH?
On forward P/E, Sprinklr, Inc. is actually cheaper at 12.8x.
03Which is the better long-term investment — CXM or FRSH?
Over the past 5 years, Sprinklr, Inc. (CXM) delivered a total return of -66.9%, compared to -83.6% for Freshworks Inc. (FRSH). A $10,000 investment in CXM five years ago would be worth approximately $3K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CXM returned -66.9% versus FRSH's -83.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CXM or FRSH?
By beta (market sensitivity over 5 years), Sprinklr, Inc. (CXM) is the lower-risk stock at 1.08β versus Freshworks Inc.'s 1.31β — meaning FRSH is approximately 21% more volatile than CXM relative to the S&P 500. On balance sheet safety, Freshworks Inc. (FRSH) carries a lower debt/equity ratio of 3% versus 8% for Sprinklr, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — CXM or FRSH?
Sprinklr, Inc. (CXM) is the more profitable company, earning 15.3% net margin versus -13.2% for Freshworks Inc. — meaning it keeps 15.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CXM leads at 3.0% versus -19.2% for FRSH. At the gross margin level — before operating expenses — FRSH leads at 84.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CXM or FRSH more undervalued right now?
On forward earnings alone, Sprinklr, Inc. (CXM) trades at 12.8x forward P/E versus 13.7x for Freshworks Inc. — 0.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FRSH: 46.2% to $11.43.
07Which pays a better dividend — CXM or FRSH?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is CXM or FRSH better for a retirement portfolio?
For long-horizon retirement investors, Sprinklr, Inc. (CXM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.08)). Both have compounded well over 10 years (CXM: -66.9%, FRSH: -83.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CXM and FRSH?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: CXM is a small-cap deep-value stock; FRSH is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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