Financial Comparison: Sound Group (NASDAQ:SOGP) vs. Integral Ad Science (NASDAQ:IAS)

Integral Ad Science (NASDAQ:IAS) and Sound Group (NASDAQ:SOGP) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Integral Ad Science and Sound Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integral Ad Science	0	3	11	0	2.79
Sound Group	0	0	0	0	N/A

Integral Ad Science presently has a consensus price target of $16.77, suggesting a potential upside of 73.77%. Given Integral Ad Science’s higher probable upside, research analysts clearly believe Integral Ad Science is more favorable than Sound Group.

Valuation & Earnings

This table compares Integral Ad Science and Sound Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integral Ad Science	$474.37 million	3.27	$7.24 million	$0.01	965.97
Sound Group	$2.24 billion	0.01	$12.54 million	$0.99	2.32

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

Insider & Institutional Ownership

95.8% of Integral Ad Science shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 2.0% of Integral Ad Science 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Integral Ad Science has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Integral Ad Science	0.59%	0.32%	0.24%
Sound Group	N/A	N/A	N/A

Summary

Integral Ad Science beats Sound Group on 8 of the 13 factors compared between the two stocks.

About Integral Ad Science

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, France, Ireland, Germany, Italy, Singapore, Australia, Japan, India, and the Nordics. The company provides IAS Signal, a cloud-based technology platform that offers return on ad spend needs; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. In addition, the company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

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.