SoundHound AI (NASDAQ:SOUN – Get Free Report) and ScanTech AI Systems (NASDAQ:STAI – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Insider and Institutional Ownership
19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 74.0% of ScanTech AI Systems shares are held by institutional investors. 8.8% of SoundHound AI shares are held by company insiders. Comparatively, 2.3% of ScanTech AI Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for SoundHound AI and ScanTech AI Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 3 | 5 | 1 | 2.60 |
| ScanTech AI Systems | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares SoundHound AI and ScanTech AI Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -91.84% | -40.15% | -25.85% |
| ScanTech AI Systems | -477.09% | -11.25% | 209.23% |
Valuation and Earnings
This table compares SoundHound AI and ScanTech AI Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $168.92 million | 16.17 | -$14.01 million | ($0.47) | -13.43 |
| ScanTech AI Systems | $1.88 million | 0.33 | -$23.07 million | ($9.20) | -0.01 |
SoundHound AI has higher revenue and earnings than ScanTech AI Systems. SoundHound AI is trading at a lower price-to-earnings ratio than ScanTech AI Systems, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
SoundHound AI has a beta of 2.62, suggesting that its share price is 162% more volatile than the S&P 500. Comparatively, ScanTech AI Systems has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.
Summary
SoundHound AI beats ScanTech AI Systems on 11 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 ScanTech AI Systems
Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.
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