Donnelley Financial Solutions (DFIN) vs SoundHound AI, Inc. (SOUN)

Donnelley Financial Solutions and SoundHound AI, Inc. are both Software Application companies. SoundHound AI, Inc. is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Donnelley Financial Solutions trades at 17.4×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 4.85%. Donnelley Financial Solutions has the higher net margin (12.4% vs −67.1%) and the higher return on invested capital (18.6% vs −30.3%). Across the 17 metrics below, Donnelley Financial Solutions leads on 11 and SoundHound AI, Inc. on 6.

Valuation

Metric DFIN SOUN Software Application median
P/E 17.37 n/m 25.90
P/S 2.10 8.90 3.04
P/B 4.04 3.69 2.60
Price to free cash flow 9.24 n/m 17.17
EV/EBITDA 8.10 n/m 15.48
EV/Sales 2.23 8.24 2.89
Earnings yield 5.76% (7.86%) 0.00%
Free cash flow yield 10.82% (6.93%) 1.98%

Profitability

Metric DFIN SOUN Software Application median
Gross margin 64.66% 42.29% 66.89%
Operating margin 19.23% (68.55%) 0.00%
Net margin 12.37% (67.10%) 0.00%
Free cash flow margin 22.73% (61.66%) 5.77%
Return on equity 23.41% (32.08%) 0.00%
Return on assets 12.14% (21.86%) 0.00%
Return on invested capital 18.59% (30.26%) 0.00%

Growth

Metric DFIN SOUN Software Application median
Revenue growth (TTM) 4.85% 54.58% 12.27%
EPS growth (last fiscal year) (62.42%) 73.08% 32.11%
Revenue growth, 5-year CAGR (3.03%) — 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DFIN SOUN Software Application median
Debt to equity 0.31 0.00 0.02
Current ratio 1.06 3.91 1.53
Net debt to EBITDA 0.71 (16.15) 0.09

Dividend

Metric DFIN SOUN Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric DFIN SOUN Software Application median
Market cap 1.64b 1.92b 487.58m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack