Critical Contrast: LIZHI (NASDAQ:SOGP) vs. GoPro (NASDAQ:GPRO)

LIZHI (NASDAQ:SOGP) and GoPro (NASDAQ:GPRO) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for LIZHI and GoPro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LIZHI	0	0	0	0	0.00
GoPro	0	1	0	0	2.00

GoPro has a consensus target price of $0.75, suggesting a potential downside of 46.81%. Given GoPro’s stronger consensus rating and higher probable upside, analysts plainly believe GoPro is more favorable than LIZHI.

Profitability

This table compares LIZHI and GoPro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LIZHI	N/A	N/A	N/A
GoPro	-17.93%	-60.09%	-17.03%

Valuation and Earnings

This table compares LIZHI and GoPro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LIZHI	$278.36 million	0.09	-$9.53 million	N/A	N/A
GoPro	$801.47 million	0.28	-$432.31 million	($0.90)	-1.57

LIZHI has higher earnings, but lower revenue than GoPro.

Institutional and Insider Ownership

1.6% of LIZHI shares are owned by institutional investors. Comparatively, 70.1% of GoPro shares are owned by institutional investors. 25.2% of LIZHI shares are owned by company insiders. Comparatively, 18.4% of GoPro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

LIZHI has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500. Comparatively, GoPro has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

LIZHI beats GoPro on 6 of the 11 factors compared between the two stocks.

About LIZHI

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 GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.