SoundHound AI (NASDAQ:SOUN – Get Free Report) and Tuya (NYSE:TUYA – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares SoundHound AI and Tuya’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -183.49% | -163.00% | -42.45% |
| Tuya | -17.53% | -2.82% | -2.58% |
Valuation & Earnings
This table compares SoundHound AI and Tuya’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $45.87 million | 28.63 | -$88.94 million | ($0.38) | -10.50 |
| Tuya | $244.17 million | 3.47 | -$60.31 million | ($0.08) | -21.00 |
Risk & Volatility
SoundHound AI has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for SoundHound AI and Tuya, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 0 | 2 | 4 | 0 | 2.67 |
| Tuya | 0 | 0 | 2 | 0 | 3.00 |
SoundHound AI currently has a consensus price target of $6.88, suggesting a potential upside of 72.43%. Tuya has a consensus price target of $2.70, suggesting a potential upside of 60.71%. Given SoundHound AI’s higher probable upside, analysts clearly believe SoundHound AI is more favorable than Tuya.
Institutional & Insider Ownership
19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 11.5% of Tuya shares are held by institutional investors. 21.3% of SoundHound AI shares are held by company insiders. Comparatively, 2.1% of Tuya shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
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 Tuya
Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.
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