Contrasting Sound Group (NASDAQ:SOGP) & Pinterest (NYSE:PINS)

Sound Group (NASDAQ:SOGP) and Pinterest (NYSE:PINS) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Sound Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sound Group and Pinterest”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$2.24 billion	0.00	$12.54 million	$0.99	1.89
Pinterest	$3.06 billion	7.08	-$35.61 million	$0.27	116.82

Sound Group has higher earnings, but lower revenue than Pinterest. Sound Group is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

1.6% of Sound Group shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 25.2% of Sound Group shares are held by insiders. Comparatively, 7.1% of Pinterest shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Sound Group and Pinterest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Group	N/A	N/A	N/A
Pinterest	5.75%	6.94%	5.93%

Analyst Recommendations

This is a summary of recent ratings for Sound Group and Pinterest, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	N/A
Pinterest	0	8	22	0	2.73

Pinterest has a consensus target price of $43.32, suggesting a potential upside of 37.35%. Given Pinterest’s higher probable upside, analysts clearly believe Pinterest is more favorable than Sound Group.

Summary

Pinterest beats Sound Group on 9 of the 13 factors compared between the two stocks.

About Sound Group

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.