Singing Machine (NASDAQ:MICS) & Algorhythm (NASDAQ:RIME) Critical Analysis

Singing Machine (NASDAQ:MICS) and Algorhythm (NASDAQ:RIME) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Singing Machine and Algorhythm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Singing Machine	0	0	0	0	0.00
Algorhythm	0	0	0	1	4.00

Algorhythm has a consensus target price of $5.00, suggesting a potential upside of 100.00%. Given Algorhythm’s stronger consensus rating and higher possible upside, analysts clearly believe Algorhythm is more favorable than Singing Machine.

Valuation & Earnings

This table compares Singing Machine and Algorhythm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Singing Machine	$29.05 million	0.36	-$2.37 million	N/A	N/A
Algorhythm	$23.06 million	0.27	N/A	N/A	N/A

Algorhythm has lower revenue, but higher earnings than Singing Machine.

Volatility and Risk

Singing Machine has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Algorhythm has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Singing Machine	N/A	-155.23%	-36.24%
Algorhythm	N/A	-198.73%	-36.64%

About Singing Machine

The Singing Machine Company, 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; 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 Singing Machine Company, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.

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.