SoundHound AI (NASDAQ:SOUN) versus C3.ai (NYSE:AI) Head to Head Comparison

C3.ai (NYSE:AI) and SoundHound AI (NASDAQ:SOUN) 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.

Analyst Ratings

This is a breakdown of current ratings for C3.ai and SoundHound AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	2	6	2	0	2.00
SoundHound AI	0	0	2	0	3.00

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.

Profitability

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
C3.ai	-99.42%	-27.78%	-23.82%
SoundHound AI	-298.53%	N/A	-126.41%

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.

Summary

SoundHound AI beats C3.ai on 7 of the 13 factors compared between the two stocks.

About C3.ai

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.