Comparing BigBear.ai (NYSE:BBAI) and SoundHound AI (NASDAQ:SOUN)

SoundHound AI (NASDAQ:SOUNGet Free Report) and BigBear.ai (NYSE:BBAIGet Free Report) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for SoundHound AI and BigBear.ai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SoundHound AI 2 2 5 2 2.64
BigBear.ai 1 3 1 0 2.00

SoundHound AI presently has a consensus target price of $16.07, indicating a potential upside of 53.79%. BigBear.ai has a consensus target price of $6.00, indicating a potential upside of 1.27%. Given SoundHound AI’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SoundHound AI is more favorable than BigBear.ai.

Valuation and Earnings

This table compares SoundHound AI and BigBear.ai”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SoundHound AI $84.69 million 51.84 -$350.68 million ($0.84) -12.44
BigBear.ai $158.24 million 16.35 -$295.55 million ($1.42) -4.17

BigBear.ai has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than BigBear.ai, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SoundHound AI has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.46, meaning that its share price is 246% more volatile than the S&P 500.

Profitability

This table compares SoundHound AI and BigBear.ai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SoundHound AI -211.16% -93.64% -51.73%
BigBear.ai -274.70% -26.11% -12.37%

Institutional & Insider Ownership

19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 9.2% of SoundHound AI shares are owned by company insiders. Comparatively, 0.5% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

SoundHound AI beats BigBear.ai on 9 of the 15 factors compared between the two stocks.

About SoundHound AI

(Get Free Report)

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 BigBear.ai

(Get Free Report)

BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.

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