Contrasting N-able (NYSE:NABL) and SoundHound AI (NASDAQ:SOUN)

SoundHound AI (NASDAQ:SOUN) and N-able (NYSE:NABL) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares SoundHound AI and N-able”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundHound AI	$168.92 million	10.81	-$14.01 million	($0.38)	-10.82
N-able	$511.43 million	1.78	-$18.82 million	($0.02)	-241.25

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

Risk and Volatility

SoundHound AI has a beta of 2.89, meaning that its stock price is 189% more volatile than the S&P 500. Comparatively, N-able has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for SoundHound AI and N-able, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundHound AI	1	4	3	1	2.44
N-able	2	4	2	0	2.00

SoundHound AI presently has a consensus target price of $9.50, suggesting a potential upside of 131.14%. N-able has a consensus target price of $6.04, suggesting a potential upside of 25.18%. Given SoundHound AI’s stronger consensus rating and higher possible upside, research analysts plainly believe SoundHound AI is more favorable than N-able.

Institutional & Insider Ownership

19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 96.3% of N-able shares are held by institutional investors. 8.8% of SoundHound AI shares are held by insiders. Comparatively, 2.0% of N-able 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoundHound AI	-33.17%	-15.72%	-11.12%
N-able	-1.94%	3.74%	2.13%

Summary

SoundHound AI beats N-able on 9 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 N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.