Similarweb (NYSE:SMWB) & SoundHound AI (NASDAQ:SOUN) Head-To-Head Contrast

Similarweb (NYSE:SMWB) and SoundHound AI (NASDAQ:SOUN) are both small-cap technology 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.

Institutional & Insider Ownership

57.6% of Similarweb shares are held by institutional investors. Comparatively, 19.3% of SoundHound AI shares are held by institutional investors. 62.4% of Similarweb shares are held by company insiders. Comparatively, 8.8% 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.

Risk & Volatility

Similarweb has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Similarweb	-7.37%	-19.81%	-1.74%
SoundHound AI	-67.45%	-30.22%	-20.28%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Similarweb and SoundHound AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	1	4	5	1	2.55
SoundHound AI	1	3	3	1	2.50

Similarweb currently has a consensus price target of $9.71, suggesting a potential upside of 10.52%. SoundHound AI has a consensus price target of $11.50, suggesting a potential upside of 159.59%. Given SoundHound AI’s higher probable upside, analysts clearly believe SoundHound AI is more favorable than Similarweb.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Similarweb	$282.60 million	2.72	-$32.94 million	($0.25)	-35.16
SoundHound AI	$168.92 million	11.65	-$14.01 million	($0.38)	-11.66

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

Summary

Similarweb beats SoundHound AI on 9 of the 14 factors compared between the two stocks.

About Similarweb

Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.

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.