SoundHound AI (NASDAQ:SOUN) & Zapata Quantum (OTCMKTS:ZPTA) Head to Head Contrast

Zapata Quantum (OTCMKTS:ZPTA) and SoundHound AI (NASDAQ:SOUN) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations for Zapata Quantum and SoundHound AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapata Quantum	0	1	0	1	3.00
SoundHound AI	1	2	3	1	2.57

SoundHound AI has a consensus target price of $12.75, indicating a potential upside of 136.55%. Given SoundHound AI’s higher possible upside, analysts plainly believe SoundHound AI is more favorable than Zapata Quantum.

Institutional & Insider Ownership

51.2% of Zapata Quantum shares are owned by institutional investors. Comparatively, 19.3% of SoundHound AI shares are owned by institutional investors. 39.3% of Zapata Quantum 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Zapata Quantum 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
Zapata Quantum	$3.88 million	27.04	$9.34 million	($0.02)	-28.00
SoundHound AI	$203.20 million	11.78	-$14.01 million	($0.38)	-14.18

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

Volatility and Risk

Zapata Quantum has a beta of 20.94, indicating that its stock price is 1,994% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.73, indicating that its stock price is 173% more volatile than the S&P 500.

Profitability

This table compares Zapata Quantum and SoundHound AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zapata Quantum	N/A	-7.23%	-3.10%
SoundHound AI	-67.45%	-30.22%	-20.28%

Summary

Zapata Quantum beats SoundHound AI on 10 of the 14 factors compared between the two stocks.

About Zapata Quantum

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, 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.