Yalla Group (NYSE:YALA) vs. Sound Group (NASDAQ:SOGP) Head-To-Head Analysis

Sound Group (NASDAQ:SOGP) and Yalla Group (NYSE:YALA) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Sound Group has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 4.7% of Yalla Group shares are owned by institutional investors. 25.2% of Sound Group shares are owned by company insiders. Comparatively, 52.2% of Yalla Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Sound Group and Yalla Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	N/A
Yalla Group	0	0	0	0	N/A

Valuation and Earnings

This table compares Sound Group and Yalla Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$2.24 billion	0.00	$12.54 million	$0.99	1.77
Yalla Group	$326.04 million	1.99	$117.34 million	$0.70	5.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sound Group	N/A	N/A	N/A
Yalla Group	40.07%	22.50%	19.92%

Summary

Yalla Group beats Sound Group on 8 of the 11 factors compared between the two stocks.

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.

About Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company's platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.