Analyzing Sound Group (NASDAQ:SOGP) and KLDiscovery (OTCMKTS:KLDI)

Volatility & Risk

KLDiscovery has a beta of -0.61, suggesting that its stock price is 161% less volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Institutional and Insider Ownership

20.4% of KLDiscovery shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 31.6% of KLDiscovery shares are held by company insiders. Comparatively, 25.2% of Sound Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares KLDiscovery and Sound Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLDiscovery	$345.80 million	0.01	-$34.81 million	($1.56)	-0.03
Sound Group	$2.07 billion	0.00	-$17.84 million	$0.99	1.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KLDiscovery	-20.91%	-607.40%	-9.45%
Sound Group	N/A	N/A	N/A

Summary

Sound Group beats KLDiscovery on 8 of the 11 factors compared between the two stocks.

About KLDiscovery

KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.

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.