Comparing Bumble (NASDAQ:BMBL) and Sound Group (NASDAQ:SOGP)

Sound Group (NASDAQ:SOGP) and Bumble (NASDAQ:BMBL) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Sound Group and Bumble’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
Bumble	-54.19%	3.31%	2.06%

Institutional & Insider Ownership

1.6% of Sound Group shares are held by institutional investors. Comparatively, 94.8% of Bumble shares are held by institutional investors. 25.2% of Sound Group shares are held by company insiders. Comparatively, 7.8% of Bumble shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sound Group and Bumble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	0.00
Bumble	1	16	2	0	2.05

Bumble has a consensus price target of $6.71, suggesting a potential upside of 17.65%. Given Bumble’s stronger consensus rating and higher probable upside, analysts clearly believe Bumble is more favorable than Sound Group.

Valuation and Earnings

This table compares Sound Group and Bumble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$2.03 billion	0.00	-$17.84 million	N/A	N/A
Bumble	$1.05 billion	0.56	-$4.21 million	($4.89)	-1.17

Bumble has lower revenue, but higher earnings than Sound Group.

Risk & Volatility

Sound Group has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Bumble beats Sound Group on 8 of the 12 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 Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.