Contrasting Sound Group (NASDAQ:SOGP) and Rumble (NASDAQ:RUM)

Sound Group (NASDAQ:SOGP) and Rumble (NASDAQ:RUM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Valuation and Earnings

This table compares Sound Group and Rumble”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$291.80 million	0.03	-$17.84 million	$0.99	1.84
Rumble	$80.96 million	39.93	-$116.42 million	($0.63)	-13.17

Sound Group has higher revenue and earnings than Rumble. Rumble 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 summary of recent ratings and price targets for Sound Group and Rumble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	0.00
Rumble	0	2	0	0	2.00

Rumble has a consensus target price of $8.00, suggesting a potential downside of 3.61%. Given Rumble’s stronger consensus rating and higher possible upside, analysts clearly believe Rumble is more favorable than Sound Group.

Risk & Volatility

Sound Group has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Sound Group and Rumble’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
Rumble	-152.81%	-62.75%	-50.56%

Insider & Institutional Ownership

1.6% of Sound Group shares are held by institutional investors. Comparatively, 26.2% of Rumble shares are held by institutional investors. 25.2% of Sound Group shares are held by company insiders. Comparatively, 72.9% of Rumble shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Sound Group beats Rumble on 8 of the 13 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 Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.