EA vs. SOUN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at EA and SOUN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | EA | SOUN |
|---|---|---|
| Company Name | Electronic Arts Inc. | SoundHound AI, Inc. |
| Country | United States | United States |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Entertainment | Software |
| Market Capitalization | 44.64 billion USD | 6.73 billion USD |
| Exchange | NasdaqGS | NasdaqGM |
| Listing Date | September 20, 1989 | April 28, 2022 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of EA and SOUN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | EA | SOUN |
|---|---|---|
| 5-Day Price Return | 9.62% | 53.92% |
| 13-Week Price Return | 19.52% | 49.86% |
| 26-Week Price Return | 35.15% | 4.56% |
| 52-Week Price Return | 22.27% | 219.77% |
| Month-to-Date Return | 16.99% | 59.73% |
| Year-to-Date Return | 21.94% | -16.83% |
| 10-Day Avg. Volume | 3.73M | 64.40M |
| 3-Month Avg. Volume | 3.12M | 38.07M |
| 3-Month Volatility | 26.34% | 105.28% |
| Beta | 0.75 | 2.82 |
Profitability
Return on Equity (TTM)
EA
15.27%
Entertainment Industry
- Max
- 42.50%
- Q3
- 22.75%
- Median
- 12.88%
- Q1
- 7.15%
- Min
- -6.84%
EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
SOUN
-68.30%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
SOUN has a negative Return on Equity of -68.30%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
EA
13.94%
Entertainment Industry
- Max
- 45.25%
- Q3
- 23.93%
- Median
- 14.60%
- Q1
- 4.89%
- Min
- -22.94%
EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
SOUN
-183.65%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
SOUN has a negative Net Profit Margin of -183.65%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
EA
19.09%
Entertainment Industry
- Max
- 46.83%
- Q3
- 28.87%
- Median
- 15.26%
- Q1
- 8.95%
- Min
- -5.53%
EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
SOUN
-195.99%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
SOUN has a negative Operating Profit Margin of -195.99%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | EA | SOUN |
|---|---|---|
| Return on Equity (TTM) | 15.27% | -68.30% |
| Return on Assets (TTM) | 8.23% | -39.36% |
| Net Profit Margin (TTM) | 13.94% | -183.65% |
| Operating Profit Margin (TTM) | 19.09% | -195.99% |
| Gross Profit Margin (TTM) | 79.14% | 44.09% |
Financial Strength
Current Ratio (MRQ)
EA
0.84
Entertainment Industry
- Max
- 6.80
- Q3
- 3.77
- Median
- 1.87
- Q1
- 0.86
- Min
- 0.39
EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
SOUN
4.92
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
SOUN’s Current Ratio of 4.92 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
EA
0.31
Entertainment Industry
- Max
- 1.65
- Q3
- 0.71
- Median
- 0.14
- Q1
- 0.04
- Min
- 0.00
EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
SOUN
0.00
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
SOUN’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
EA
190.43
Entertainment Industry
- Max
- 62.11
- Q3
- 31.19
- Median
- 7.50
- Q1
- 2.02
- Min
- -6.33
With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.
SOUN
-93.77
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
SOUN has a negative Interest Coverage Ratio of -93.77. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | EA | SOUN |
|---|---|---|
| Current Ratio (MRQ) | 0.84 | 4.92 |
| Quick Ratio (MRQ) | 0.84 | 4.92 |
| Debt-to-Equity Ratio (MRQ) | 0.31 | 0.00 |
| Interest Coverage Ratio (TTM) | 190.43 | -93.77 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
EA
0.44%
Entertainment Industry
- Max
- 2.54%
- Q3
- 1.29%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Yield of 0.44% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.
SOUN
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SOUN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
EA
18.91%
Entertainment Industry
- Max
- 82.30%
- Q3
- 45.76%
- Median
- 29.16%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SOUN
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SOUN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | EA | SOUN |
|---|---|---|
| Dividend Yield (TTM) | 0.44% | 0.00% |
| Dividend Payout Ratio (TTM) | 18.91% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
EA
43.10
Entertainment Industry
- Max
- 53.51
- Q3
- 45.31
- Median
- 33.16
- Q1
- 18.21
- Min
- 3.89
EA’s P/E Ratio of 43.10 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SOUN
--
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
P/E Ratio data for SOUN is currently unavailable.
Price-to-Sales Ratio (TTM)
EA
6.01
Entertainment Industry
- Max
- 12.81
- Q3
- 7.20
- Median
- 4.68
- Q1
- 3.32
- Min
- 0.79
EA’s P/S Ratio of 6.01 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
SOUN
64.84
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
With a P/S Ratio of 64.84, SOUN trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
EA
6.60
Entertainment Industry
- Max
- 17.11
- Q3
- 8.38
- Median
- 5.24
- Q1
- 2.18
- Min
- 0.67
EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
SOUN
8.16
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
SOUN’s P/B Ratio of 8.16 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | EA | SOUN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 43.10 | -- |
| Price-to-Sales Ratio (TTM) | 6.01 | 64.84 |
| Price-to-Book Ratio (MRQ) | 6.60 | 8.16 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.17 | -- |