Financial Analysis: Asana (NYSE:ASAN) & SoundHound AI (NASDAQ:SOUN)

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

Volatility & Risk

Asana has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, SoundHound AI has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500.

Valuation and Earnings

This table compares Asana and SoundHound AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asana	$706.68 million	5.74	-$257.03 million	($1.12)	-15.82
SoundHound AI	$67.30 million	55.81	-$88.94 million	($0.98)	-9.74

SoundHound AI has lower revenue, but higher earnings than Asana. Asana 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 and Institutional Ownership

26.2% of Asana shares are owned by institutional investors. Comparatively, 19.3% of SoundHound AI shares are owned by institutional investors. 64.0% of Asana shares are owned by company insiders. Comparatively, 12.3% of SoundHound AI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Asana and SoundHound AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asana	2	9	4	0	2.13
SoundHound AI	0	4	3	0	2.43

Asana presently has a consensus price target of $17.73, indicating a potential upside of 0.07%. SoundHound AI has a consensus price target of $12.86, indicating a potential upside of 34.63%. Given SoundHound AI’s stronger consensus rating and higher probable upside, analysts plainly believe SoundHound AI is more favorable than Asana.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Asana	-36.17%	-86.84%	-27.20%
SoundHound AI	-163.58%	-55.58%	-31.70%

About Asana

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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.