MSI vs. SOUN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MSI and SOUN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSI | SOUN |
|---|---|---|
| Company Name | Motorola Solutions, Inc. | SoundHound AI, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Software |
| Market Capitalization | 63.05 billion USD | 4.93 billion USD |
| Exchange | NYSE | NasdaqGM |
| Listing Date | January 2, 1962 | April 28, 2022 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MSI 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 | MSI | SOUN |
|---|---|---|
| 5-Day Price Return | -3.56% | -15.54% |
| 13-Week Price Return | -17.45% | -21.94% |
| 26-Week Price Return | -8.06% | 8.08% |
| 52-Week Price Return | -23.50% | 94.10% |
| Month-to-Date Return | -6.57% | -30.93% |
| Year-to-Date Return | -17.79% | -38.66% |
| 10-Day Avg. Volume | 1.59M | 37.44M |
| 3-Month Avg. Volume | 0.96M | 54.43M |
| 3-Month Volatility | 22.32% | 79.52% |
| Beta | 1.02 | 2.91 |
Profitability
Return on Equity (TTM)
MSI
110.80%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
MSI’s Return on Equity of 110.80% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SOUN
-93.43%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
SOUN has a negative Return on Equity of -93.43%. 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)
MSI
18.71%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
A Net Profit Margin of 18.71% places MSI in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
SOUN
-210.68%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
SOUN has a negative Net Profit Margin of -210.68%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
MSI
25.25%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
An Operating Profit Margin of 25.25% places MSI in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
SOUN
-217.62%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
SOUN has a negative Operating Profit Margin of -217.62%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | MSI | SOUN |
|---|---|---|
| Return on Equity (TTM) | 110.80% | -93.43% |
| Return on Assets (TTM) | 13.18% | -51.61% |
| Net Profit Margin (TTM) | 18.71% | -210.68% |
| Operating Profit Margin (TTM) | 25.25% | -217.62% |
| Gross Profit Margin (TTM) | 51.41% | 39.75% |
Financial Strength
Current Ratio (MRQ)
MSI
1.03
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
MSI’s Current Ratio of 1.03 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
SOUN
5.15
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
SOUN’s Current Ratio of 5.15 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)
MSI
4.01
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.01, MSI operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
SOUN
0.00
Software Industry
- Max
- 2.04
- Q3
- 0.86
- 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)
MSI
8.92
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
MSI’s Interest Coverage Ratio of 8.92 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
SOUN
-93.77
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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 | MSI | SOUN |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 5.15 |
| Quick Ratio (MRQ) | 0.86 | 5.15 |
| Debt-to-Equity Ratio (MRQ) | 4.01 | 0.00 |
| Interest Coverage Ratio (TTM) | 8.92 | -93.77 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MSI
1.12%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
MSI’s Dividend Yield of 1.12% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.
SOUN
0.00%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- 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)
MSI
33.55%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
MSI’s Dividend Payout Ratio of 33.55% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SOUN
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- 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 | MSI | SOUN |
|---|---|---|
| Dividend Yield (TTM) | 1.12% | 0.00% |
| Dividend Payout Ratio (TTM) | 33.55% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
MSI
29.91
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
MSI’s P/E Ratio of 29.91 is within the middle range for the Communications Equipment 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
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
P/E Ratio data for SOUN is currently unavailable.
Price-to-Sales Ratio (TTM)
MSI
5.59
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
MSI’s P/S Ratio of 5.59 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
SOUN
32.36
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
With a P/S Ratio of 32.36, 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)
MSI
32.52
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
At 32.52, MSI’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
SOUN
16.42
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
SOUN’s P/B Ratio of 16.42 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | MSI | SOUN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 29.91 | -- |
| Price-to-Sales Ratio (TTM) | 5.59 | 32.36 |
| Price-to-Book Ratio (MRQ) | 32.52 | 16.42 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.22 | -- |