Palladyne AI (NASDAQ:PDYN – Get Free Report) and SoundHound AI (NASDAQ:SOUN – Get Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares Palladyne AI and SoundHound AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Palladyne AI | -722.22% | -56.81% | -37.45% |
| SoundHound AI | -163.58% | -55.58% | -31.70% |
Risk & Volatility
Palladyne AI has a beta of 3.83, meaning that its share price is 283% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Palladyne AI | 0 | 0 | 1 | 0 | 3.00 |
| SoundHound AI | 0 | 3 | 4 | 0 | 2.57 |
Palladyne AI currently has a consensus price target of $15.00, suggesting a potential upside of 46.20%. SoundHound AI has a consensus price target of $12.36, suggesting a potential downside of 10.52%. Given Palladyne AI’s stronger consensus rating and higher probable upside, analysts clearly believe Palladyne AI is more favorable than SoundHound AI.
Earnings & Valuation
This table compares Palladyne AI and SoundHound AI”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Palladyne AI | $6.15 million | 50.23 | -$115.59 million | ($2.16) | -4.75 |
| SoundHound AI | $45.87 million | 118.41 | -$88.94 million | ($0.36) | -38.36 |
SoundHound AI has higher revenue and earnings than Palladyne AI. SoundHound AI is trading at a lower price-to-earnings ratio than Palladyne AI, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
26.0% of Palladyne AI shares are held by institutional investors. Comparatively, 19.3% of SoundHound AI shares are held by institutional investors. 12.0% of Palladyne AI shares are held by company insiders. Comparatively, 12.3% of SoundHound AI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
SoundHound AI beats Palladyne AI on 9 of the 14 factors compared between the two stocks.
About Palladyne AI
Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.
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.
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