Comparing Zoom Video Communications (NASDAQ:ZM) and Sound Group (NASDAQ:SOGP)

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

Insider and Institutional Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 66.5% of Zoom Video Communications shares are owned by institutional investors. 25.2% of Sound Group shares are owned by insiders. Comparatively, 10.8% of Zoom Video Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Sound Group and Zoom Video Communications’ 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
Zoom Video Communications	20.34%	10.98%	8.89%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sound Group and Zoom Video Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	0.00
Zoom Video Communications	0	16	8	1	2.40

Zoom Video Communications has a consensus target price of $89.48, suggesting a potential upside of 7.22%. Given Zoom Video Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Zoom Video Communications is more favorable than Sound Group.

Earnings and Valuation

This table compares Sound Group and Zoom Video Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$291.80 million	0.04	-$17.84 million	N/A	N/A
Zoom Video Communications	$4.53 billion	5.65	$637.46 million	$3.00	27.82

Zoom Video Communications has higher revenue and earnings than Sound Group.

Summary

Zoom Video Communications beats Sound Group on 11 of the 12 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 Zoom Video Communications

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.