Sound Group (NASDAQ:SOGP) versus Rumble (NASDAQ:RUM) Financial Analysis

Rumble (NASDAQ:RUM) and Sound Group (NASDAQ:SOGP) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Rumble and Sound Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rumble	-152.81%	-62.75%	-50.56%
Sound Group	N/A	N/A	N/A

Institutional & Insider Ownership

26.2% of Rumble shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 72.9% of Rumble shares are held by insiders. Comparatively, 25.2% of Sound Group shares are held by 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.

Valuation & Earnings

This table compares Rumble and Sound Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$80.96 million	39.93	-$116.42 million	($0.63)	-13.17
Sound Group	$291.80 million	0.03	-$17.84 million	$0.99	1.84

Sound Group has higher revenue and earnings than Rumble. Rumble is trading at a lower price-to-earnings ratio than Sound Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Rumble has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Rumble and Sound Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	2	0	0	2.00
Sound Group	0	0	0	0	0.00

Rumble presently has a consensus target price of $8.00, indicating a potential downside of 3.61%. Given Rumble’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rumble is more favorable than Sound Group.

Summary

Sound Group beats Rumble on 8 of the 13 factors compared between the two stocks.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

About Sound Group

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.