Contrasting SoundThinking (NASDAQ:SSTI) and Braze (NASDAQ:BRZE)

Braze (NASDAQ:BRZEGet Free Report) and SoundThinking (NASDAQ:SSTIGet Free Report) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

90.5% of Braze shares are held by institutional investors. Comparatively, 60.7% of SoundThinking shares are held by institutional investors. 24.0% of Braze shares are held by insiders. Comparatively, 7.7% of SoundThinking shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Braze has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, SoundThinking has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Braze and SoundThinking’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Braze $505.48 million 7.02 -$129.17 million ($1.28) -27.27
SoundThinking $92.72 million 1.65 -$2.72 million ($0.32) -37.44

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

Analyst Ratings

This is a summary of recent ratings for Braze and SoundThinking, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braze 0 1 16 0 2.94
SoundThinking 0 2 4 0 2.67

Braze currently has a consensus price target of $60.88, indicating a potential upside of 74.43%. SoundThinking has a consensus price target of $22.50, indicating a potential upside of 87.81%. Given SoundThinking’s higher probable upside, analysts plainly believe SoundThinking is more favorable than Braze.

Profitability

This table compares Braze and SoundThinking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braze -25.06% -27.85% -15.66%
SoundThinking -3.94% -12.69% -6.64%

About Braze

(Get Free Report)

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

About SoundThinking

(Get Free Report)

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

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