SoundHound AI (NASDAQ:SOUN – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for SoundHound AI and Baozun, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 3 | 5 | 1 | 2.60 |
| Baozun | 1 | 1 | 0 | 0 | 1.50 |
SoundHound AI presently has a consensus price target of $14.93, suggesting a potential upside of 82.72%. Given SoundHound AI’s stronger consensus rating and higher possible upside, research analysts plainly believe SoundHound AI is more favorable than Baozun.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $168.92 million | 20.45 | -$14.01 million | ($0.47) | -17.38 |
| Baozun | $1.42 billion | 0.10 | -$34.62 million | ($0.45) | -5.56 |
SoundHound AI has higher earnings, but lower revenue than Baozun. SoundHound AI is trading at a lower price-to-earnings ratio than Baozun, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 8.8% of SoundHound AI shares are held by company insiders. Comparatively, 59.2% of Baozun shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares SoundHound AI and Baozun’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -91.84% | -40.15% | -25.85% |
| Baozun | -1.80% | 1.68% | 0.88% |
Volatility & Risk
SoundHound AI has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Summary
Baozun beats SoundHound AI on 8 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 Baozun
Baozun Inc., through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People’s Republic of China. The company operates through two segments, E-Commerce and Brand Management (BBM). The E-Commerce segment offers brands’ store operations, customer services and value-added services in logistics and supply chain management, IT, and digital marketing. The Brand Management segment provides brand management, strategic and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain, and logistics and technology services. It serves brand partners in various categories, including apparel and accessories, appliances, electronics, home and furnishings, food and health products, beauty and cosmetics, fast moving consumer goods, mother and baby products, and automobiles. The company was formerly known as Baozun Cayman Inc. and changed its name to Baozun Inc. in March 2015. Baozun Inc. was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.
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