Adeia Inc. (ADEA) vs SoundHound AI, Inc. (SOUN)

Adeia Inc. and SoundHound AI, Inc. are both Software Application companies. Adeia Inc. and SoundHound AI, Inc. are of similar size ($2.8B and $2.8B). SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Adeia Inc. trades at 22.5×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 24.4%. Adeia Inc. has the higher net margin (26.1% vs −67.1%) and the higher return on invested capital (16.9% vs −30.3%). Across the 17 metrics below, Adeia Inc. leads on 11 and SoundHound AI, Inc. on 6.

Valuation

Metric ADEA SOUN Software Application median
P/E 22.55 n/m 24.79
P/S 5.96 12.82 2.67
P/B 5.89 5.31 3.01
Price to free cash flow 16.33 n/m 16.59
EV/EBITDA 11.68 n/m 14.40
EV/Sales 6.49 12.03 2.62
Earnings yield 4.43% (5.45%) 0.00%
Free cash flow yield 6.12% (4.81%) 1.91%

Profitability

Metric ADEA SOUN Software Application median
Gross margin 100.00% 42.29% 67.03%
Operating margin 41.62% (68.55%) 0.00%
Net margin 26.05% (67.10%) 0.00%
Free cash flow margin 36.52% (61.66%) 4.32%
Return on equity 27.88% (32.08%) 0.00%
Return on assets 11.70% (21.86%) 0.00%
Return on invested capital 16.87% (30.26%) 0.00%

Growth

Metric ADEA SOUN Software Application median
Revenue growth (TTM) 24.35% 54.58% 12.40%
EPS growth (last fiscal year) 73.68% 96.71% —
Revenue growth, 5-year CAGR 2.54% — 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ADEA SOUN Software Application median
Debt to equity 0.81 0.00 0.02
Current ratio 3.25 3.91 1.55
Net debt to EBITDA 1.19 (16.15) 0.06

Dividend

Metric ADEA SOUN Software Application median
Dividend yield 1.54% — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric ADEA SOUN Software Application median
Market cap 2.76b 2.76b 396.11m

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