Clarivate (NYSE:CLVT) & SoundHound AI (NASDAQ:SOUN) Financial Contrast

SoundHound AI (NASDAQ:SOUN) and Clarivate (NYSE:CLVT) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings and price targets for SoundHound AI and Clarivate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundHound AI	2	2	5	1	2.50
Clarivate	2	4	0	0	1.67

SoundHound AI currently has a consensus target price of $16.07, suggesting a potential upside of 63.73%. Clarivate has a consensus target price of $4.28, suggesting a potential upside of 56.31%. Given SoundHound AI’s stronger consensus rating and higher possible upside, equities analysts plainly believe SoundHound AI is more favorable than Clarivate.

Institutional & Insider Ownership

19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 85.7% of Clarivate shares are held by institutional investors. 9.2% of SoundHound AI shares are held by insiders. Comparatively, 23.2% of Clarivate 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.

Earnings & Valuation

This table compares SoundHound AI and Clarivate”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundHound AI	$84.69 million	48.69	-$350.68 million	($0.84)	-11.69
Clarivate	$2.50 billion	0.72	-$636.70 million	($0.57)	-4.80

SoundHound AI has higher earnings, but lower revenue than Clarivate. SoundHound AI is trading at a lower price-to-earnings ratio than Clarivate, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

SoundHound AI has a beta of 2.65, meaning that its stock price is 165% more volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Profitability

This table compares SoundHound AI and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundHound AI	-211.16%	-93.64%	-51.73%
Clarivate	-15.83%	8.55%	3.76%

Summary

Clarivate beats SoundHound AI on 8 of the 15 factors compared between the two stocks.

About SoundHound AI

SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service 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 Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; Employee Assist; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.