SoundHound AI (NASDAQ:SOUN – Get Free Report) and Cognizant Technology Solutions (NASDAQ:CTSH – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider & Institutional Ownership
19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are held by institutional investors. 9.2% of SoundHound AI shares are held by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares SoundHound AI and Cognizant Technology Solutions’ 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% |
| Cognizant Technology Solutions | 10.20% | 17.00% | 12.61% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $84.69 million | 63.30 | -$350.68 million | ($0.84) | -15.19 |
| Cognizant Technology Solutions | $19.74 billion | 1.97 | $2.24 billion | $4.31 | 18.73 |
Cognizant Technology Solutions has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than Cognizant Technology Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for SoundHound AI and Cognizant Technology Solutions, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 3 | 5 | 1 | 2.60 |
| Cognizant Technology Solutions | 0 | 12 | 7 | 0 | 2.37 |
SoundHound AI currently has a consensus target price of $17.42, indicating a potential upside of 36.49%. Cognizant Technology Solutions has a consensus target price of $85.19, indicating a potential upside of 5.53%. Given SoundHound AI’s stronger consensus rating and higher possible upside, equities analysts clearly believe SoundHound AI is more favorable than Cognizant Technology Solutions.
Volatility and Risk
SoundHound AI has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Summary
Cognizant Technology Solutions beats SoundHound AI on 9 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 Cognizant Technology Solutions
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
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