Head to Head Comparison: SoundHound AI (NASDAQ:SOUN) vs. Telos (NASDAQ:TLS)

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

Risk & Volatility

Telos has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Telos and SoundHound AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	1	2	3	0	2.33
SoundHound AI	1	3	5	1	2.60

Telos presently has a consensus price target of $7.10, indicating a potential upside of 55.53%. SoundHound AI has a consensus price target of $14.93, indicating a potential upside of 136.77%. Given SoundHound AI’s stronger consensus rating and higher probable upside, analysts plainly believe SoundHound AI is more favorable than Telos.

Earnings and Valuation

This table compares Telos 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
Telos	$164.80 million	2.07	-$36.55 million	($0.35)	-13.04
SoundHound AI	$168.92 million	16.15	-$14.01 million	($0.47)	-13.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Telos	-14.25%	-11.95%	-8.45%
SoundHound AI	-91.84%	-40.15%	-25.85%

Insider & Institutional Ownership

62.1% of Telos shares are owned by institutional investors. Comparatively, 19.3% of SoundHound AI shares are owned by institutional investors. 14.9% of Telos shares are owned by company insiders. Comparatively, 8.8% of SoundHound AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

About Telos

Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions worldwide. The company operates in two segments, Security Solutions and Secure Networks. It provides Xacta, a platform for enterprise cyber risk management and security compliance automation; and consulting, assessment and compliance, engineering and evaluation, operations, and penetration testing services. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management for mission-critical communications used by military field operatives; and Telos Advanced Cyber Analytics solution, which is a threat feed source of global Internet Protocol addresses known to engage in potentially malicious activity, including mass scanning and generic opportunistic attacks; and Telos Ghost, a solution to eliminate cyberattack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. In addition, the company provides IDTrust360, an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services; and ONYX, a touchless fingerprint biometric solution for mobile devices. Further, it offers secure mobility solutions that enable remote work and minimize operational and security concerns across and beyond the enterprise; and network management and defense services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations. It serves the United States federal government, large commercial businesses, state and local governments, and international customers. Telos Corporation was founded in 1968 and is headquartered in Ashburn, Virginia.

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.