Gen Digital (NASDAQ:GEN – Get Free Report) and SoundHound AI (NASDAQ:SOUN – Get Free Report) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
81.7% of Gen Digital shares are owned by institutional investors. Comparatively, 27.0% of SoundHound AI shares are owned by institutional investors. 11.8% of Gen Digital shares are owned by company insiders. Comparatively, 21.3% of SoundHound AI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Gen Digital and SoundHound AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gen Digital | 37.41% | 55.88% | 6.68% |
| SoundHound AI | -298.53% | N/A | -126.41% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gen Digital | 0 | 1 | 0 | 0 | 2.00 |
| SoundHound AI | 0 | 0 | 1 | 0 | 3.00 |
Gen Digital currently has a consensus price target of $25.00, indicating a potential upside of 21.71%. SoundHound AI has a consensus price target of $4.35, indicating a potential upside of 75.40%. Given SoundHound AI’s stronger consensus rating and higher probable upside, analysts plainly believe SoundHound AI is more favorable than Gen Digital.
Valuation & Earnings
This table compares Gen Digital and SoundHound AI’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gen Digital | $3.34 billion | 3.93 | $1.35 billion | $2.08 | 9.88 |
| SoundHound AI | $31.13 million | 19.18 | -$115.37 million | ($0.53) | -4.68 |
Gen Digital has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than Gen Digital, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Gen Digital has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
Gen Digital beats SoundHound AI on 9 of the 14 factors compared between the two stocks.
About Gen Digital
Gen Digital Inc. provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers security and performance products comprising that provide real-time protection for PCs, Macs and mobile devices against malware, viruses, adware, and other online threats; and Norton and LifeLock identity theft protection solution that offers monitoring, alerts, and restoration services to its customers. The company also provides Dark Web Monitoring product, which looks for personal information of its members on the Dark Web; Avast Secure Identity that provides advanced identity protection including credit monitoring and alerts; LifeLock Home Title Protect that detects fraud and notifies members; and Norton Social Media Monitoring that help keep customers' social media accounts safer by monitoring them for account takeovers, risky activity, and inappropriate content. In addition, it offers Norton Secure VPN solution, which enhances security and online privacy by providing an encrypted data tunnel; Privacy Monitor Assistant, an on-demand, white glove service where agents help members delete personal information from data brokers online; Avira Security, a consumer-focused portfolio of cybersecurity and privacy solutions; AntiTrack product, which helps to keep personal information and browsing activity private by blocking trackers and disguising digital fingerprints online; and Online Reputation Management solution that manages online search results, personal branding, and digital privacy. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is based in Tempe, Arizona.
About SoundHound AI
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across 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 automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.
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