Karooooo Ltd. (KARO) vs SoundHound AI, Inc. (SOUN)

Karooooo Ltd. and SoundHound AI, Inc. are both Software Application companies. Karooooo Ltd. and SoundHound AI, Inc. are of similar size ($2.0B and $1.9B). SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Karooooo Ltd. trades at 30.1×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 31.7%. Karooooo Ltd. has the higher net margin (17.7% vs −67.1%) and the higher return on invested capital (31.5% vs −30.3%). Across the 18 metrics below, Karooooo Ltd. leads on 12 and SoundHound AI, Inc. on 6.

Valuation

Metric KARO SOUN Software Application median
P/E 30.14 n/m 25.90
P/S 5.35 8.90 3.04
P/B 10.20 3.69 2.60
Price to free cash flow n/m n/m 17.17
EV/EBITDA 20.97 n/m 15.48
EV/Sales 5.33 8.24 2.89
Earnings yield 3.32% (7.86%) 0.00%
Free cash flow yield (3.30%) (6.93%) 1.98%

Profitability

Metric KARO SOUN Software Application median
Gross margin 67.34% 42.29% 66.89%
Operating margin 25.43% (68.55%) 0.00%
Net margin 17.65% (67.10%) 0.00%
Free cash flow margin 35.39% (61.66%) 5.77%
Return on equity 35.47% (32.08%) 0.00%
Return on assets 19.44% (21.86%) 0.00%
Return on invested capital 31.48% (30.26%) 0.00%

Growth

Metric KARO SOUN Software Application median
Revenue growth (TTM) 31.71% 54.58% 12.27%
EPS growth (last fiscal year) 12.88% 73.08% 32.11%
Revenue growth, 5-year CAGR 17.58% — 14.34%
Net income growth, 5-year CAGR 24.02% 0.00% 0.00%

Health

Metric KARO SOUN Software Application median
Debt to equity 0.17 0.00 0.02
Current ratio 0.64 3.91 1.53
Net debt to EBITDA (0.26) (16.15) 0.09

Dividend

Metric KARO SOUN Software Application median
Dividend yield 2.38% — 1.10%
Payout ratio 0.72 — 0.28

Size

Metric KARO SOUN Software Application median
Market cap 1.95b 1.92b 487.58m

Compare with another peer

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