Comparing LIZHI (NASDAQ:SOGP) and LiveOne (NASDAQ:LVO)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LIZHI	$278.36 million	0.07	-$9.53 million	N/A	N/A
LiveOne	$114.40 million	0.60	-$18.71 million	($0.20)	-2.97

LIZHI has higher revenue and earnings than LiveOne.

Profitability

This table compares LIZHI and LiveOne’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
LiveOne	-18.52%	N/A	-20.69%

Institutional and Insider Ownership

1.6% of LIZHI shares are held by institutional investors. Comparatively, 21.3% of LiveOne shares are held by institutional investors. 25.2% of LIZHI shares are held by company insiders. Comparatively, 24.6% of LiveOne shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

LIZHI has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500. Comparatively, LiveOne has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for LIZHI and LiveOne, as provided by MarketBeat.

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

LiveOne has a consensus price target of $1.50, suggesting a potential upside of 152.31%. Given LiveOne’s stronger consensus rating and higher possible upside, analysts plainly believe LiveOne is more favorable than LIZHI.

Summary

LIZHI beats LiveOne 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 LiveOne

LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content. The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels. Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. The company was formerly known as LiveXLive Media, Inc. and changed its name to LiveOne, Inc. in October 2021. LiveOne, Inc. was incorporated in 2009 and is headquartered in Beverly Hills, California.