SoundHound AI (NASDAQ:SOUN – Get Free Report) and Datasea (NASDAQ:DTSS – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Insider and Institutional Ownership
19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 9.2% of SoundHound AI shares are owned by insiders. Comparatively, 50.7% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for SoundHound AI and Datasea, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 2 | 2 | 5 | 1 | 2.50 |
| Datasea | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares SoundHound AI and Datasea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -211.16% | -93.64% | -51.73% |
| Datasea | -5.17% | -110.68% | -50.20% |
Earnings & Valuation
This table compares SoundHound AI and Datasea”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $84.69 million | 54.07 | -$350.68 million | ($0.84) | -12.98 |
| Datasea | $71.62 million | 0.13 | -$5.09 million | ($0.42) | -2.50 |
Datasea has lower revenue, but higher earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than Datasea, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SoundHound AI has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
Summary
SoundHound AI beats Datasea on 8 of the 15 factors compared between the two stocks.
About SoundHound AI
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; Employee Assist; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.
About Datasea
Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
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