SoundHound AI (NASDAQ:SOUN) versus N-able (NYSE:NABL) Head-To-Head Analysis

N-able (NYSE:NABL) and SoundHound AI (NASDAQ:SOUN) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation and Earnings

This table compares N-able and SoundHound AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N-able	$533.41 million	1.79	-$18.82 million	($0.02)	-252.25
SoundHound AI	$203.20 million	9.00	-$14.01 million	($0.38)	-10.84

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for N-able and SoundHound AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N-able	2	4	2	0	2.00
SoundHound AI	1	3	3	1	2.50

N-able currently has a consensus target price of $5.08, suggesting a potential upside of 0.69%. SoundHound AI has a consensus target price of $11.50, suggesting a potential upside of 179.13%. Given SoundHound AI’s stronger consensus rating and higher probable upside, analysts clearly believe SoundHound AI is more favorable than N-able.

Volatility & Risk

N-able has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.73, suggesting that its stock price is 173% more volatile than the S&P 500.

Insider & Institutional Ownership

96.3% of N-able shares are owned by institutional investors. Comparatively, 19.3% of SoundHound AI shares are owned by institutional investors. 2.0% of N-able shares are owned by company insiders. Comparatively, 8.8% of SoundHound 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.

Profitability

This table compares N-able and SoundHound AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
N-able	-0.88%	3.55%	2.04%
SoundHound AI	-67.45%	-30.22%	-20.28%

Summary

SoundHound AI beats N-able on 9 of the 15 factors compared between the two stocks.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

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.