SoundHound AI (NASDAQ:SOUN – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for SoundHound AI and Taboola.com, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 4 | 5 | 1 | 2.55 |
| Taboola.com | 0 | 4 | 4 | 0 | 2.50 |
SoundHound AI currently has a consensus price target of $15.50, suggesting a potential downside of 13.79%. Taboola.com has a consensus price target of $4.50, suggesting a potential upside of 25.00%. Given Taboola.com’s higher probable upside, analysts plainly believe Taboola.com is more favorable than SoundHound AI.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $84.69 million | 86.55 | -$350.68 million | ($0.63) | -28.54 |
| Taboola.com | $1.77 billion | 0.54 | -$3.76 million | $0.04 | 90.00 |
Taboola.com has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 9.2% of SoundHound AI shares are owned by company insiders. Comparatively, 24.7% of Taboola.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
SoundHound AI has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Profitability
This table compares SoundHound AI and Taboola.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -171.81% | -73.13% | -40.68% |
| Taboola.com | 0.75% | 5.27% | 3.21% |
Summary
Taboola.com beats SoundHound AI on 10 of the 15 factors compared between the two stocks.
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.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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