C3.ai (NYSE:AI – Get Free Report) and SoundHound AI (NASDAQ:SOUN – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
39.0% of C3.ai shares are held by institutional investors. Comparatively, 27.0% of SoundHound AI shares are held by institutional investors. 34.0% of C3.ai shares are held by company insiders. Comparatively, 21.3% of SoundHound AI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
C3.ai has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
C3.ai presently has a consensus price target of $26.36, suggesting a potential downside of 2.86%. SoundHound AI has a consensus price target of $4.57, suggesting a potential upside of 102.96%. Given SoundHound AI’s stronger consensus rating and higher possible upside, analysts clearly believe SoundHound AI is more favorable than C3.ai.
This table compares C3.ai and SoundHound AI’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares C3.ai and SoundHound AI’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|C3.ai||$266.80 million||12.02||-$268.84 million||($2.34)||-11.60|
|SoundHound AI||$31.13 million||17.40||-$115.37 million||($0.53)||-4.25|
SoundHound AI has lower revenue, but higher earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than SoundHound AI, indicating that it is currently the more affordable of the two stocks.
SoundHound AI beats C3.ai on 7 of the 13 factors compared between the two stocks.
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
About SoundHound AI
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.
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