Critical Review: Sound Group (SOGP) versus Its Peers

Sound Group (NASDAQ:SOGP) is one of 115 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its rivals? We will compare Sound Group to similar businesses based on the strength of its valuation, earnings, institutional ownership, dividends, risk, profitability and analyst recommendations.

Earnings & Valuation

This table compares Sound Group and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sound Group	$316.83 million	$12.54 million	2.57
Sound Group Competitors	$8.84 billion	$1.91 billion	59.92

Sound Group’s rivals have higher revenue and earnings than Sound Group. Sound Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Sound Group has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Sound Group’s rivals have a beta of 1.42, meaning that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Sound Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Group	1.69%	8.71%	4.96%
Sound Group Competitors	-151.37%	-40.46%	-8.36%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sound Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	N/A
Sound Group Competitors	1047	4455	10237	289	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 12.53%. Given Sound Group’s rivals higher possible upside, analysts clearly believe Sound Group has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

1.6% of Sound Group shares are held by institutional investors. Comparatively, 51.3% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 25.2% of Sound Group shares are held by company insiders. Comparatively, 16.0% of shares of all “Computer programming, data processing, & other computer related” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Sound Group Company Profile

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.