Head to Head Review: SoundHound AI (SOUN) and Its Peers

SoundHound AI (NASDAQ:SOUN) is one of 959 public companies in the “Software” industry, but how does it contrast to its peers? We will compare SoundHound AI to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Insider and Institutional Ownership

19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 8.8% of SoundHound AI shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for SoundHound AI and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundHound AI	1	4	3	1	2.44
SoundHound AI Competitors	5852	21632	45028	1503	2.57

SoundHound AI presently has a consensus price target of $9.50, suggesting a potential upside of 172.21%. As a group, “Software” companies have a potential upside of 28.37%. Given SoundHound AI’s higher probable upside, analysts clearly believe SoundHound AI is more favorable than its peers.

Volatility and Risk

SoundHound AI has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500. Comparatively, SoundHound AI’s peers have a beta of 1.33, suggesting that their average share price is 33% more volatile than the S&P 500.

Profitability

This table compares SoundHound AI and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundHound AI	-33.17%	-13.35%	-9.89%
SoundHound AI Competitors	-596.15%	26.13%	-8.98%

Earnings and Valuation

This table compares SoundHound AI and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SoundHound AI	$168.92 million	-$14.01 million	-16.62
SoundHound AI Competitors	$1.79 billion	$382.69 million	112.34

SoundHound AI’s peers have higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

SoundHound AI peers beat SoundHound AI on 9 of the 13 factors compared.

About SoundHound AI

SoundHound AI develops voice and conversational artificial intelligence technology for businesses. Its platform is designed to let people interact with products and services using natural speech, without relying solely on preset commands or menus. The company offers voice assistants and conversational tools for industries including automotive, restaurants, and consumer electronics. Its products include Houndify, a platform for building voice-enabled applications, and SoundHound Chat AI, which combines conversational voice technology with generative AI.