Financial Contrast: SoundHound AI (NASDAQ:SOUN) vs. The Descartes Systems Group (NASDAQ:DSGX)

SoundHound AI (NASDAQ:SOUNGet Free Report) and The Descartes Systems Group (NASDAQ:DSGXGet Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for SoundHound AI and The Descartes Systems Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SoundHound AI 1 1 4 0 2.50
The Descartes Systems Group 1 3 5 0 2.44

SoundHound AI presently has a consensus target price of $6.88, indicating a potential upside of 16.81%. The Descartes Systems Group has a consensus target price of $97.78, indicating a potential upside of 6.83%. Given SoundHound AI’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SoundHound AI is more favorable than The Descartes Systems Group.

Earnings and Valuation

This table compares SoundHound AI and The Descartes Systems Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SoundHound AI $45.87 million 39.69 -$88.94 million ($0.39) -15.10
The Descartes Systems Group $572.90 million 13.60 $115.91 million $1.34 68.31

The Descartes Systems Group has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than The Descartes Systems Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SoundHound AI and The Descartes Systems Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SoundHound AI -188.57% -1,955.68% -62.57%
The Descartes Systems Group 20.23% 9.80% 8.14%

Institutional and Insider Ownership

19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 77.7% of The Descartes Systems Group shares are owned by institutional investors. 21.3% of SoundHound AI shares are owned by company insiders. Comparatively, 0.3% of The Descartes Systems Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

SoundHound AI has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, The Descartes Systems Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

The Descartes Systems Group beats SoundHound AI on 9 of the 14 factors compared between the two stocks.

About SoundHound AI

(Get Free Report)

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. SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.

About The Descartes Systems Group

(Get Free Report)

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company provides consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as manufacturers, retailers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

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