Analyzing Sound Group (SOGP) & Its Peers

Sound Group (NASDAQ:SOGP) is one of 184 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Sound Group to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Institutional and Insider Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 36.1% of shares of all “Entertainment” companies are owned by institutional investors. 25.2% of Sound Group shares are owned by insiders. Comparatively, 23.5% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sound Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Group	N/A	N/A	N/A
Sound Group Competitors	10.21%	-21.12%	-2.56%

Risk and Volatility

Sound Group has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500. Comparatively, Sound Group’s competitors have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sound Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	1	0	0	2.00
Sound Group Competitors	1867	4488	9597	253	2.51

As a group, “Entertainment” companies have a potential upside of 23.63%. Given Sound Group’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Sound Group has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Sound Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sound Group	$3.44 billion	$32.39 million	-7.66
Sound Group Competitors	$6.09 billion	$73.91 million	14.30

Sound Group’s competitors have higher revenue and earnings than Sound Group. Sound Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sound Group competitors beat Sound Group on 9 of the 13 factors compared.

About Sound Group

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.