Contrasting LIZHI (NASDAQ:SOGP) and Sony (NYSE:SONY)

LIZHI (NASDAQ:SOGP) and Sony (NYSE:SONY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Valuation and Earnings

This table compares LIZHI and Sony”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LIZHI	$278.36 million	0.08	-$9.53 million	N/A	N/A
Sony	$85.09 billion	1.99	$7.53 billion	$1.26	22.21

Sony has higher revenue and earnings than LIZHI.

Analyst Recommendations

This is a breakdown of recent recommendations for LIZHI and Sony, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LIZHI	0	0	0	0	0.00
Sony	0	1	4	1	3.00

Sony has a consensus price target of $28.00, suggesting a potential upside of 0.07%. Given Sony’s stronger consensus rating and higher possible upside, analysts clearly believe Sony is more favorable than LIZHI.

Volatility and Risk

LIZHI has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, Sony has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

1.6% of LIZHI shares are owned by institutional investors. Comparatively, 14.1% of Sony shares are owned by institutional investors. 25.2% of LIZHI shares are owned by insiders. Comparatively, 7.0% of Sony shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares LIZHI and Sony’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
Sony	9.14%	13.88%	3.32%

Summary

Sony beats LIZHI on 11 of the 13 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 Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.