SoundHound AI (NASDAQ:SOUN – Get Free Report) and Zapata Quantum (OTCMKTS:ZPTA – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Risk and Volatility
SoundHound AI has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500. Comparatively, Zapata Quantum has a beta of 20.94, meaning that its stock price is 1,994% more volatile than the S&P 500.
Valuation and Earnings
This table compares SoundHound AI and Zapata Quantum”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundHound AI | $203.20 million | 11.78 | -$14.01 million | ($0.38) | -14.18 |
| Zapata Quantum | $3.88 million | 27.04 | $9.34 million | ($0.02) | -28.00 |
Zapata Quantum has lower revenue, but higher earnings than SoundHound AI. Zapata Quantum is trading at a lower price-to-earnings ratio than SoundHound AI, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for SoundHound AI and Zapata Quantum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundHound AI | 1 | 2 | 3 | 1 | 2.57 |
| Zapata Quantum | 0 | 1 | 0 | 1 | 3.00 |
SoundHound AI currently has a consensus target price of $12.75, suggesting a potential upside of 136.55%. Given SoundHound AI’s higher possible upside, equities analysts clearly believe SoundHound AI is more favorable than Zapata Quantum.
Profitability
This table compares SoundHound AI and Zapata Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundHound AI | -67.45% | -30.22% | -20.28% |
| Zapata Quantum | N/A | -7.23% | -3.10% |
Institutional and Insider Ownership
19.3% of SoundHound AI shares are held by institutional investors. Comparatively, 51.2% of Zapata Quantum shares are held by institutional investors. 8.8% of SoundHound AI shares are held by company insiders. Comparatively, 39.3% of Zapata Quantum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Zapata Quantum beats SoundHound AI on 10 of the 14 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 Zapata Quantum
Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.
Receive News & Ratings for SoundHound AI Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SoundHound AI and related companies with MarketBeat.com's FREE daily email newsletter.
