Reviewing SoundHound AI (NASDAQ:SOUN) and SecureAlert (OTCMKTS:TRCK)

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

Earnings and Valuation

This table compares SecureAlert and SoundHound AI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SecureAlert	$35.22 million	0.09	-$1.88 million	$0.05	5.20
SoundHound AI	$84.69 million	37.48	-$350.68 million	($0.84)	-8.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SecureAlert	1.80%	-33.67%	10.00%
SoundHound AI	-211.16%	-93.64%	-51.73%

Analyst Recommendations

This is a summary of current ratings and recommmendations for SecureAlert and SoundHound AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SecureAlert	0	0	0	0	0.00
SoundHound AI	1	3	5	1	2.60

SoundHound AI has a consensus target price of $16.07, indicating a potential upside of 112.73%. Given SoundHound AI’s stronger consensus rating and higher possible upside, analysts plainly believe SoundHound AI is more favorable than SecureAlert.

Insider & Institutional Ownership

5.8% of SecureAlert shares are held by institutional investors. Comparatively, 19.3% of SoundHound AI shares are held by institutional investors. 11.1% of SecureAlert shares are held by insiders. Comparatively, 9.2% of SoundHound AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

SecureAlert has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.64, indicating that its share price is 164% more volatile than the S&P 500.

Summary

SoundHound AI beats SecureAlert on 8 of the 15 factors compared between the two stocks.

About SecureAlert

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.

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.