Head to Head Contrast: Algorhythm (NASDAQ:RIME) & Adeia (NASDAQ:ADEA)

Adeia (NASDAQ:ADEA) and Algorhythm (NASDAQ:RIME) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Earnings and Valuation

This table compares Adeia and Algorhythm”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adeia	$470.87 million	5.60	$111.07 million	$1.08	22.12
Algorhythm	$4.39 million	0.52	-$15.87 million	($1.49)	-0.09

Adeia has higher revenue and earnings than Algorhythm. Algorhythm is trading at a lower price-to-earnings ratio than Adeia, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Adeia has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Algorhythm has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Profitability

This table compares Adeia and Algorhythm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adeia	26.05%	39.26%	17.50%
Algorhythm	-176.39%	-1,310.33%	-101.29%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Adeia and Algorhythm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adeia	0	2	4	0	2.67
Algorhythm	1	1	0	0	1.50

Adeia currently has a consensus price target of $37.60, suggesting a potential upside of 57.39%. Given Adeia’s stronger consensus rating and higher possible upside, analysts plainly believe Adeia is more favorable than Algorhythm.

Insider and Institutional Ownership

97.4% of Adeia shares are owned by institutional investors. 2.0% of Adeia shares are owned by company insiders. Comparatively, 0.9% of Algorhythm shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Adeia beats Algorhythm on 14 of the 14 factors compared between the two stocks.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.

About Algorhythm

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.