SoundHound AI (NASDAQ:SOUN) & Cloopen Group (NYSE:RAAS) Financial Review

Cloopen Group (NYSE:RAAS) and SoundHound AI (NASDAQ:SOUN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations for Cloopen Group and SoundHound AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cloopen Group	0	0	0	0	N/A
SoundHound AI	0	2	4	0	2.67

SoundHound AI has a consensus price target of $6.88, indicating a potential upside of 52.89%. Given SoundHound AI’s higher probable upside, analysts clearly believe SoundHound AI is more favorable than Cloopen Group.

Valuation and Earnings

This table compares Cloopen Group 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
Cloopen Group	$1.01 billion	0.06	-$141.84 million	N/A	N/A
SoundHound AI	$45.87 million	30.32	-$88.94 million	($0.39)	-11.54

SoundHound AI has lower revenue, but higher earnings than Cloopen Group.

Risk and Volatility

Cloopen Group has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.87, indicating that its stock price is 187% more volatile than the S&P 500.

Institutional & Insider Ownership

19.3% of SoundHound AI shares are owned by institutional investors. 9.8% of Cloopen Group shares are owned by insiders. Comparatively, 21.3% of SoundHound AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cloopen Group	N/A	N/A	N/A
SoundHound AI	-188.57%	-1,955.68%	-62.57%

Summary

SoundHound AI beats Cloopen Group on 7 of the 11 factors compared between the two stocks.

About Cloopen Group

Cloopen Group Holding Limited, through its subsidiaries, provides cloud communication services in the People's Republic of China. It offers River Soldier CRM, an intelligent marketing system and digital operation management platform; AI vision technology; Ladder AI Kernal, a natural language processing technology; Smart IVR, an intelligent navigation robot; Rongxi assistive robot technology; and Rongxi sparring robot that helps enterprises solve problems. The company also provides sky counter that offers remote audio and video services for enterprise customers; instant messaging and enterprise work center services; SMS verification, international SMS, and SMS sending platform services; and international voice, voice notification, two-way calling, and voice verification code services. It serves a customer base consisting of enterprises of various industries, including enterprise general, insurance, government, car, manufacture, and port. The company was founded in 2012 and is headquartered in Beijing, China.

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.