Head-To-Head Analysis: Sound Group (NASDAQ:SOGP) vs. GigaMedia (NASDAQ:GIGM)

GigaMedia (NASDAQ:GIGM) and Sound Group (NASDAQ:SOGP) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Valuation & Earnings

This table compares GigaMedia and Sound Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$4.29 million	3.35	-$3.40 million	($0.37)	-3.51
Sound Group	$2.24 billion	0.00	$12.54 million	$0.99	2.09

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

Institutional & Insider Ownership

13.5% of GigaMedia shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 25.2% of Sound Group shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GigaMedia	-109.81%	-8.94%	-8.37%
Sound Group	1.69%	8.71%	4.96%

Analyst Recommendations

This is a summary of recent ratings and target prices for GigaMedia and Sound Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	0	0	0	0	N/A
Sound Group	0	0	0	0	N/A

Risk and Volatility

GigaMedia has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Summary

Sound Group beats GigaMedia on 9 of the 11 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. It operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. The company offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. The company was founded in 1998 and is headquartered in Taipei, Taiwan.

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.