Financial Analysis: Sound Group (SOGP) and The Competition

Sound Group (NASDAQ:SOGP) is one of 113 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its competitors? We will compare Sound Group to similar companies based on the strength of its dividends, risk, analyst recommendations, earnings, profitability, valuation and institutional ownership.

Risk and Volatility

Sound Group has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Sound Group’s competitors have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares Sound Group and its competitors’ 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	-155.61%	-42.07%	-8.63%

Valuation and Earnings

This table compares Sound Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sound Group	$316.83 million	$12.54 million	3.34
Sound Group Competitors	$9.10 billion	$1.98 billion	46.06

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sound Group and its competitors, as provided 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	1033	4393	10127	288	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 16.00%. Given Sound Group’s competitors higher possible upside, analysts plainly believe Sound Group has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 25.2% of Sound Group shares are owned by company insiders. Comparatively, 16.3% of shares of all “Computer programming, data processing, & other computer related” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company 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.