Grindr Inc. (GRND) vs SoundHound AI, Inc. (SOUN)

Grindr Inc. and SoundHound AI, Inc. are both Software Application companies. Grindr Inc. and SoundHound AI, Inc. are of similar size ($2.8B and $2.7B). SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Grindr Inc. trades at 31.5×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 32.4%. Grindr Inc. has the higher net margin (18.8% vs −67.1%) and the higher return on invested capital (25.8% vs −30.3%). Across the 16 metrics below, Grindr Inc. leads on 13 and SoundHound AI, Inc. on 3.

Valuation

Metric GRND SOUN Software Application median
P/E 31.54 n/m 24.79
P/S 5.47 12.82 2.67
P/B n/m 5.31 3.01
Price to free cash flow 19.50 n/m 16.59
EV/EBITDA 20.17 n/m 14.40
EV/Sales 6.21 12.03 2.62
Earnings yield 3.17% (5.45%) 0.00%
Free cash flow yield 5.13% (4.81%) 1.91%

Profitability

Metric GRND SOUN Software Application median
Gross margin 74.94% 42.29% 67.03%
Operating margin 29.77% (68.55%) 0.00%
Net margin 18.75% (67.10%) 0.00%
Free cash flow margin 28.03% (61.66%) 4.32%
Return on equity 108.65% (32.08%) 0.00%
Return on assets 18.92% (21.86%) 0.00%
Return on invested capital 25.77% (30.26%) 0.00%

Growth

Metric GRND SOUN Software Application median
Revenue growth (TTM) 32.38% 54.58% 12.40%
EPS growth (last fiscal year) 158.11% 96.71% —
Revenue growth, 5-year CAGR — — 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRND SOUN Software Application median
Debt to equity (32.91) 0.00 0.02
Current ratio 1.10 3.91 1.55
Net debt to EBITDA 2.27 (16.15) 0.06

Dividend

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

Size

Metric GRND SOUN Software Application median
Market cap 2.73b 2.76b 396.11m

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