Pinterest (NYSE:PINS) vs. Sound Group (NASDAQ:SOGP) Critical Review

Pinterest (NYSE:PINS) and Sound Group (NASDAQ:SOGP) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Institutional and Insider Ownership

88.8% of Pinterest shares are owned by institutional investors. Comparatively, 1.6% of Sound Group shares are owned by institutional investors. 7.1% of Pinterest shares are owned by insiders. Comparatively, 25.2% of Sound Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pinterest and Sound Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$3.34 billion	6.63	-$35.61 million	$0.21	154.38
Sound Group	$2.24 billion	0.00	$12.54 million	$0.99	1.98

Sound Group has lower revenue, but higher earnings than Pinterest. Sound Group is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Pinterest and Sound Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	8	22	0	2.73
Sound Group	0	0	0	0	N/A

Pinterest presently has a consensus target price of $43.32, suggesting a potential upside of 33.63%. Given Pinterest’s higher probable upside, equities research analysts clearly believe Pinterest is more favorable than Sound Group.

Profitability

This table compares Pinterest and Sound Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinterest	5.75%	6.94%	5.93%
Sound Group	N/A	N/A	N/A

Volatility and Risk

Pinterest has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Summary

Pinterest beats Sound Group on 9 of the 13 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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.