Vertiv (NYSE:VRT – Get Free Report) and SoundHound AI (NASDAQ:SOUN – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Institutional & Insider Ownership
89.9% of Vertiv shares are held by institutional investors. Comparatively, 19.3% of SoundHound AI shares are held by institutional investors. 2.6% of Vertiv shares are held by insiders. Comparatively, 9.2% of SoundHound AI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations for Vertiv and SoundHound AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vertiv | 1 | 4 | 21 | 0 | 2.77 |
| SoundHound AI | 1 | 3 | 5 | 1 | 2.60 |
Risk and Volatility
Vertiv has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.71, indicating that its stock price is 171% more volatile than the S&P 500.
Valuation and Earnings
This table compares Vertiv and SoundHound AI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vertiv | $10.23 billion | 11.26 | $1.33 billion | $3.41 | 88.25 |
| SoundHound AI | $168.92 million | 19.65 | -$14.01 million | ($0.05) | -157.00 |
Vertiv has higher revenue and earnings than SoundHound AI. SoundHound AI is trading at a lower price-to-earnings ratio than Vertiv, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vertiv and SoundHound AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vertiv | 13.03% | 49.55% | 15.30% |
| SoundHound AI | -8.71% | -3.63% | -2.30% |
Summary
Vertiv beats SoundHound AI on 10 of the 15 factors compared between the two stocks.
About Vertiv
Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.
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.
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