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SOUN vs. WDC: A Head-to-Head Stock Comparison

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Here’s a clear look at SOUN and WDC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolSOUNWDC
Company NameSoundHound AI, Inc.Western Digital Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareTechnology Hardware, Storage & Peripherals
Market Capitalization4.93 billion USD56.02 billion USD
ExchangeNasdaqGMNasdaqGS
Listing DateApril 28, 2022October 31, 1978
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SOUN and WDC 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.

SOUN vs. WDC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolSOUNWDC
5-Day Price Return-15.54%-9.41%
13-Week Price Return-21.94%110.27%
26-Week Price Return8.08%222.04%
52-Week Price Return94.10%232.97%
Month-to-Date Return-30.93%5.07%
Year-to-Date Return-38.66%250.28%
10-Day Avg. Volume37.44M10.02M
3-Month Avg. Volume54.43M8.79M
3-Month Volatility79.52%58.84%
Beta2.911.81

Profitability

Return on Equity (TTM)

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.

WDC

35.06%

Technology Hardware, Storage & Peripherals Industry

Max
56.93%
Q3
29.31%
Median
7.95%
Q1
5.02%
Min
-7.45%

In the upper quartile for the Technology Hardware, Storage & Peripherals industry, WDC’s Return on Equity of 35.06% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

SOUN vs. WDC: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Net Profit Margin (TTM)

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.

WDC

21.48%

Technology Hardware, Storage & Peripherals Industry

Max
17.92%
Q3
8.33%
Median
4.15%
Q1
1.88%
Min
-3.36%

WDC’s Net Profit Margin of 21.48% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

SOUN vs. WDC: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Operating Profit Margin (TTM)

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.

WDC

24.86%

Technology Hardware, Storage & Peripherals Industry

Max
20.70%
Q3
10.85%
Median
6.05%
Q1
3.54%
Min
-4.90%

WDC’s Operating Profit Margin of 24.86% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

SOUN vs. WDC: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolSOUNWDC
Return on Equity (TTM)-93.43%35.06%
Return on Assets (TTM)-51.61%14.69%
Net Profit Margin (TTM)-210.68%21.48%
Operating Profit Margin (TTM)-217.62%24.86%
Gross Profit Margin (TTM)39.75%39.34%

Financial Strength

Current Ratio (MRQ)

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.

WDC

1.21

Technology Hardware, Storage & Peripherals Industry

Max
2.51
Q3
1.90
Median
1.38
Q1
0.97
Min
0.11

WDC’s Current Ratio of 1.21 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

SOUN vs. WDC: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

WDC

0.77

Technology Hardware, Storage & Peripherals Industry

Max
1.34
Q3
0.82
Median
0.42
Q1
0.16
Min
0.00

WDC’s Debt-to-Equity Ratio of 0.77 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SOUN vs. WDC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Interest Coverage Ratio (TTM)

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.

WDC

2.04

Technology Hardware, Storage & Peripherals Industry

Max
143.63
Q3
62.44
Median
17.59
Q1
5.32
Min
-23.93

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, WDC’s Interest Coverage Ratio of 2.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

SOUN vs. WDC: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolSOUNWDC
Current Ratio (MRQ)5.151.21
Quick Ratio (MRQ)5.150.94
Debt-to-Equity Ratio (MRQ)0.000.77
Interest Coverage Ratio (TTM)-93.772.04

Growth

Revenue Growth

SOUN vs. WDC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

SOUN vs. WDC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

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.

WDC

0.15%

Technology Hardware, Storage & Peripherals Industry

Max
4.93%
Q3
3.31%
Median
1.70%
Q1
0.01%
Min
0.00%

WDC’s Dividend Yield of 0.15% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

SOUN vs. WDC: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend Payout Ratio (TTM)

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.

WDC

5.67%

Technology Hardware, Storage & Peripherals Industry

Max
136.56%
Q3
76.58%
Median
35.95%
Q1
0.01%
Min
0.00%

WDC’s Dividend Payout Ratio of 5.67% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SOUN vs. WDC: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolSOUNWDC
Dividend Yield (TTM)0.00%0.15%
Dividend Payout Ratio (TTM)0.00%5.67%

Valuation

Price-to-Earnings Ratio (TTM)

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.

WDC

21.70

Technology Hardware, Storage & Peripherals Industry

Max
43.58
Q3
27.14
Median
21.23
Q1
15.28
Min
8.31

WDC’s P/E Ratio of 21.70 is within the middle range for the Technology Hardware, Storage & Peripherals 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 vs. WDC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

WDC

4.66

Technology Hardware, Storage & Peripherals Industry

Max
6.35
Q3
3.45
Median
0.96
Q1
0.46
Min
0.04

WDC’s P/S Ratio of 4.66 is in the upper echelon for the Technology Hardware, Storage & Peripherals industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SOUN vs. WDC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

WDC

7.36

Technology Hardware, Storage & Peripherals Industry

Max
13.94
Q3
8.15
Median
1.85
Q1
0.94
Min
0.32

WDC’s P/B Ratio of 7.36 is within the conventional range for the Technology Hardware, Storage & Peripherals 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 vs. WDC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolSOUNWDC
Price-to-Earnings Ratio (TTM)--21.70
Price-to-Sales Ratio (TTM)32.364.66
Price-to-Book Ratio (MRQ)16.427.36
Price-to-Free Cash Flow Ratio (TTM)--27.81