SoundHound AI, Inc. (SOUN) vs Wealthfront Corporation (WLTH)

SoundHound AI, Inc. and Wealthfront Corporation are both Software Application companies. SoundHound AI, Inc. is the larger, with a market value of $2.2B against $1.8B — 1.3× the size. Wealthfront Corporation has the higher net margin (−19.4% vs −67.1%) and the lower return on invested capital (−59.5% vs −30.3%). Across the 16 metrics below, Wealthfront Corporation leads on 11 and SoundHound AI, Inc. on 5.

Valuation

Metric SOUN WLTH Software Application median
P/E n/m n/m 25.41
P/S 10.00 4.29 2.73
P/B 4.14 2.57 2.57
Price to free cash flow n/m 11.16 17.58
EV/EBITDA n/m n/m 15.36
EV/Sales 9.34 3.05 2.59
Earnings yield (6.99%) (3.57%) 0.00%
Free cash flow yield (6.17%) 8.96% 2.24%

Profitability

Metric SOUN WLTH Software Application median
Gross margin 42.29% 89.11% 67.03%
Operating margin (68.55%) (40.82%) 0.00%
Net margin (67.10%) (19.42%) 0.00%
Free cash flow margin (61.66%) 38.48% 5.01%
Return on equity (32.08%) 0.00% 0.00%
Return on assets (21.86%) (8.10%) 0.00%
Return on invested capital (30.26%) (59.47%) 0.00%

Growth

Metric SOUN WLTH Software Application median
Revenue growth (TTM) 54.58% — 12.48%
EPS growth (last fiscal year) 96.71% (154.20%) 32.26%
Revenue growth, 5-year CAGR — — 14.21%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric SOUN WLTH Software Application median
Debt to equity 0.00 0.01 0.02
Current ratio 3.91 1.43 1.52
Net debt to EBITDA (16.15) 4.35 0.08

Dividend

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

Size

Metric SOUN WLTH Software Application median
Market cap 2.20b 1.75b 357.77m

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