SoundHound AI (NASDAQ:SOUN – Get Free Report) and BIO-key International (NASDAQ:BKYI – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings for SoundHound AI and BIO-key International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 3 | 3 | 1 | 2.50 |
| BIO-key International | 1 | 1 | 0 | 0 | 1.50 |
SoundHound AI presently has a consensus price target of $11.50, indicating a potential upside of 154.99%. Given SoundHound AI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SoundHound AI is more favorable than BIO-key International.
Institutional and Insider Ownership
19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 26.5% of BIO-key International shares are owned by institutional investors. 8.8% of SoundHound AI shares are owned by company insiders. Comparatively, 4.0% of BIO-key International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares SoundHound AI and BIO-key International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $168.92 million | 11.86 | -$14.01 million | ($0.38) | -11.87 |
| BIO-key International | $6.09 million | 0.92 | -$7.16 million | ($4.11) | -0.67 |
BIO-key International has lower revenue, but higher earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than BIO-key International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
SoundHound AI has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500. Comparatively, BIO-key International has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Profitability
This table compares SoundHound AI and BIO-key International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -67.45% | -30.22% | -20.28% |
| BIO-key International | -50.01% | -67.31% | -40.28% |
Summary
SoundHound AI beats BIO-key International on 11 of the 14 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 BIO-key International
BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.
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