ePlus inc. (PLUS) vs SoundHound AI, Inc. (SOUN)

ePlus inc. and SoundHound AI, Inc. are both Software Application companies. SoundHound AI, Inc. is the larger, with a market value of $2.8B against $2.4B — 1.2× the size. SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; ePlus inc. trades at 19.7×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 16.2%. ePlus inc. has the higher net margin (4.91% vs −67.1%) and the higher return on invested capital (16.3% vs −30.3%). Across the 17 metrics below, ePlus inc. leads on 12 and SoundHound AI, Inc. on 5.

Valuation

Metric PLUS SOUN Software Application median
P/E 19.68 n/m 24.79
P/S 0.96 12.82 2.67
P/B 2.19 5.31 3.01
Price to free cash flow 42.82 n/m 16.59
EV/EBITDA 10.14 n/m 14.40
EV/Sales 0.78 12.03 2.62
Earnings yield 5.08% (5.45%) 0.00%
Free cash flow yield 2.34% (4.81%) 1.91%

Profitability

Metric PLUS SOUN Software Application median
Gross margin 25.06% 42.29% 67.03%
Operating margin 6.62% (68.55%) 0.00%
Net margin 4.91% (67.10%) 0.00%
Free cash flow margin 2.24% (61.66%) 4.32%
Return on equity 11.50% (32.08%) 0.00%
Return on assets 6.56% (21.86%) 0.00%
Return on invested capital 16.25% (30.26%) 0.00%

Growth

Metric PLUS SOUN Software Application median
Revenue growth (TTM) 16.21% 54.58% 12.40%
EPS growth (last fiscal year) 24.20% 96.71% —
Revenue growth, 5-year CAGR 9.27% — 13.72%
Net income growth, 5-year CAGR 12.26% 0.00% 0.00%

Health

Metric PLUS SOUN Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 2.13 3.91 1.55
Net debt to EBITDA (2.12) (16.15) 0.06

Dividend

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

Size

Metric PLUS SOUN Software Application median
Market cap 2.38b 2.76b 396.11m

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