SoundHound AI (NASDAQ:SOUN) versus Tuya (NYSE:TUYA) Head to Head Comparison

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

Volatility and Risk

Tuya has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.87, suggesting that its share price is 187% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuya	-17.53%	-2.82%	-2.58%
SoundHound AI	-183.49%	-163.00%	-42.45%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tuya and SoundHound AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	0	2	0	3.00
SoundHound AI	0	2	4	0	2.67

Tuya presently has a consensus target price of $2.70, indicating a potential upside of 57.89%. SoundHound AI has a consensus target price of $6.88, indicating a potential upside of 74.18%. Given SoundHound AI’s higher possible upside, analysts clearly believe SoundHound AI is more favorable than Tuya.

Earnings & Valuation

This table compares Tuya and SoundHound AI’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$229.99 million	3.75	-$60.31 million	($0.08)	-21.38
SoundHound AI	$45.87 million	28.35	-$88.94 million	($0.38)	-10.39

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

Insider & Institutional Ownership

11.5% of Tuya shares are held by institutional investors. Comparatively, 19.3% of SoundHound AI shares are held by institutional investors. 2.1% of Tuya shares are held by insiders. Comparatively, 21.3% of SoundHound AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

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.