Comparing Eventbrite (NYSE:EB) and Sound Group (NASDAQ:SOGP)

Eventbrite (NYSE:EB) and Sound Group (NASDAQ:SOGP) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Risk & Volatility

Eventbrite has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Eventbrite and Sound Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eventbrite	-5.47%	-10.00%	-1.95%
Sound Group	1.69%	8.71%	4.96%

Insider and Institutional Ownership

91.6% of Eventbrite shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 21.5% of Eventbrite shares are held by insiders. Comparatively, 25.2% of Sound Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Eventbrite and Sound Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eventbrite	$326.13 million	1.45	-$26.48 million	($0.19)	-25.58
Sound Group	$316.83 million	0.03	$12.54 million	$0.99	2.16

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Eventbrite and Sound Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eventbrite	0	2	5	0	2.71
Sound Group	0	0	0	0	N/A

Eventbrite currently has a consensus target price of $9.93, indicating a potential upside of 104.29%. Given Eventbrite’s higher probable upside, equities research analysts clearly believe Eventbrite is more favorable than Sound Group.

Summary

Sound Group beats Eventbrite on 7 of the 13 factors compared between the two stocks.

About Eventbrite

Eventbrite, Inc. operates a two-sided marketplace that provides self-service ticketing and marketing tools for event creators in the United States and internationally. Its platform integrates components needed to plan, promote, and produce live events that allow creators to reduce friction and costs, enhance reach, and drive ticket sales. The company was formerly known as Mollyguard Corporation and changed its name to Eventbrite, Inc. in 2009. Eventbrite, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Sound Group

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.