SoundHound AI, Inc. (SOUN) vs Vertex, Inc. (VERX)

SoundHound AI, Inc. and Vertex, Inc. are both Software Application companies. SoundHound AI, Inc. and Vertex, Inc. are of similar size ($2.2B and $2.2B). SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Vertex, Inc. trades at 389×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 10.8%. Vertex, Inc. has the higher net margin (0.45% vs −67.1%) and the higher return on invested capital (−2.39% vs −30.3%). Across the 17 metrics below, Vertex, Inc. leads on 12 and SoundHound AI, Inc. on 5.

Valuation

Metric SOUN VERX Software Application median
P/E n/m 388.66 25.41
P/S 10.00 2.74 2.73
P/B 4.14 8.95 2.57
Price to free cash flow n/m 42.59 17.58
EV/EBITDA n/m 22.48 15.36
EV/Sales 9.34 2.88 2.59
Earnings yield (6.99%) 0.26% 0.00%
Free cash flow yield (6.17%) 2.35% 2.24%

Profitability

Metric SOUN VERX Software Application median
Gross margin 42.29% 63.95% 67.03%
Operating margin (68.55%) (1.69%) 0.00%
Net margin (67.10%) 0.45% 0.00%
Free cash flow margin (61.66%) 6.43% 5.01%
Return on equity (32.08%) 1.46% 0.00%
Return on assets (21.86%) 0.30% 0.00%
Return on invested capital (30.26%) (2.39%) 0.00%

Growth

Metric SOUN VERX Software Application median
Revenue growth (TTM) 54.58% 10.83% 12.48%
EPS growth (last fiscal year) 96.71% 111.76% 32.26%
Revenue growth, 5-year CAGR — 14.84% 14.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SOUN VERX Software Application median
Debt to equity 0.00 1.40 0.02
Current ratio 3.91 0.87 1.52
Net debt to EBITDA (16.15) 0.22 0.08

Dividend

Metric SOUN VERX Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric SOUN VERX Software Application median
Market cap 2.20b 2.22b 357.77m

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