Critical Review: Algorhythm (RIME) and Its Competitors

Algorhythm (NASDAQ:RIME) is one of 258 publicly-traded companies in the “Technology Services” industry, but how does it weigh in compared to its peers? We will compare Algorhythm to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

37.4% of shares of all “Technology Services” companies are held by institutional investors. 0.9% of Algorhythm shares are held by company insiders. Comparatively, 20.0% of shares of all “Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Algorhythm and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algorhythm	-105.18%	N/A	-166.60%
Algorhythm Competitors	-435.67%	-673.61%	-16.77%

Valuation and Earnings

This table compares Algorhythm and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Algorhythm	$23.34 million	-$23.26 million	0.10
Algorhythm Competitors	$1.30 billion	$24.78 million	-5.18

Algorhythm’s peers have higher revenue and earnings than Algorhythm. Algorhythm is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Algorhythm and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algorhythm	1	0	0	1	2.50
Algorhythm Competitors	1024	2427	5057	280	2.52

Algorhythm presently has a consensus target price of $5.00, suggesting a potential upside of 143.90%. As a group, “Technology Services” companies have a potential upside of 23.64%. Given Algorhythm’s higher possible upside, equities analysts plainly believe Algorhythm is more favorable than its peers.

Risk and Volatility

Algorhythm has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Algorhythm’s peers have a beta of -15.10, indicating that their average stock price is 1,610% less volatile than the S&P 500.

Summary

Algorhythm peers beat Algorhythm on 7 of the 13 factors compared.

Algorhythm Company Profile

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.