SoundHound AI, Inc. and Domo, Inc. are two dynamic players in the software application industry, each driving innovation through advanced technology platforms. SoundHound focuses on voice AI solutions that enhance conversational experiences, while Domo excels in cloud-based business intelligence, connecting organizations with real-time data insights. Given their overlapping markets and growth potential, this article will help investors identify which company offers the most compelling opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between SoundHound AI and Domo by providing an overview of these two companies and their main differences.
SoundHound AI Overview
SoundHound AI, Inc. develops an independent voice artificial intelligence platform aimed at enabling businesses to deliver high-quality conversational experiences. Its flagship product, the Houndify platform, offers tools such as automatic speech recognition and natural language understanding. The company operates in the software application industry and is headquartered in Santa Clara, California, with a market cap of approximately 4.7B USD.
Domo Overview
Domo, Inc. operates a cloud-based business intelligence platform that connects all organizational levels with real-time data and insights. This platform enables business management from smartphones, enhancing decision-making processes. Domo is also in the software application sector, headquartered in American Fork, Utah, and has a market capitalization near 257M USD.
Key similarities and differences
Both SoundHound AI and Domo operate within the technology sector focusing on software applications, targeting enterprise clients with platforms that enhance operational efficiency. SoundHound specializes in voice AI and conversational interfaces, whereas Domo focuses on business intelligence and data connectivity. Market capitalization and product focus distinctly separate their scale and core offerings, indicating different strategic positioning.
Income Statement Comparison
Below is a side-by-side comparison of the most recent fiscal year’s income statement metrics for SoundHound AI, Inc. and Domo, Inc., illustrating their financial performance.
| Metric | SoundHound AI, Inc. | Domo, Inc. |
|---|---|---|
| Market Cap | 4.66B | 257M |
| Revenue | 85M | 317M |
| EBITDA | -329M | -50M |
| EBIT | -348M | -59M |
| Net Income | -351M | -82M |
| EPS | -1.04 | -2.13 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
SoundHound AI, Inc.
SoundHound AI has shown strong revenue growth over 2020-2024, rising 550.63% to $84.7M in 2024, but net income remains deeply negative, worsening overall by -371.3%. The gross margin is favorable at 48.86%, yet operating and net margins are highly unfavorable, reflecting heavy operating expenses. In 2024, revenue surged 84.62% while margins deteriorated sharply, with net loss expanding significantly.
Domo, Inc.
Domo’s revenue increased moderately by 50.84% from 2021 to 2025, reaching $317M in 2025, though it slightly declined by 0.61% year-over-year. Gross margin is strong at 74.45%, but EBIT and net margins remain negative, though less severe than SoundHound’s. The 2025 performance shows a slight revenue dip and margin declines, continuing a trend of operating losses but with more stable expense control.
Which one has the stronger fundamentals?
Both companies report unfavorable global income statement evaluations due to persistent losses, but SoundHound’s revenue growth is more robust albeit with larger margin deterioration. Domo maintains higher and more stable margins with less volatile revenue trends. SoundHound’s rapid expansion contrasts with Domo’s steadier financials, highlighting different risk profiles and operational challenges.
Financial Ratios Comparison
The table below compares key financial ratios for SoundHound AI, Inc. (SOUN) and Domo, Inc. (DOMO) based on their most recent fiscal year data.
| Ratios | SoundHound AI, Inc. (2024) | Domo, Inc. (2025) |
|---|---|---|
| ROE | -191.99% | 46.23% |
| ROIC | -68.13% | 194.73% |
| P/E | -19.15 | -3.98 |
| P/B | 36.76 | -1.84 |
| Current Ratio | 3.77 | 0.56 |
| Quick Ratio | 3.77 | 0.56 |
| D/E | 0.02 | -0.76 |
| Debt-to-Assets | 0.79% | 63.23% |
| Interest Coverage | -28.05 | -2.99 |
| Asset Turnover | 0.15 | 1.48 |
| Fixed Asset Turnover | 14.28 | 8.17 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
SoundHound AI, Inc.
SoundHound AI’s ratios show several weaknesses, including highly unfavorable net margin (-414%), return on equity (-192%), and return on invested capital (-68%), indicating profitability and efficiency challenges. Despite a strong quick ratio and low debt levels, concerns arise due to weak interest coverage and high price-to-book ratio. The company does not pay dividends, likely focusing on growth and reinvestment.
Domo, Inc.
Domo presents a mixed ratio profile with favorable returns on equity (46%) and invested capital (195%), alongside strong asset turnover metrics. However, it struggles with liquidity, showing a low current ratio (0.56) and unfavorable debt to assets (63%). Like SoundHound, Domo pays no dividends, reflecting a probable emphasis on reinvestment and development rather than shareholder payouts.
Which one has the best ratios?
Comparing the two, Domo exhibits a more balanced ratio structure with half of its metrics favorable, especially in profitability and asset efficiency. SoundHound AI shows a larger proportion of unfavorable ratios, particularly in profitability and leverage metrics. Therefore, Domo holds a more neutral and comparatively stronger financial ratio standing than SoundHound AI.
Strategic Positioning
This section compares the strategic positioning of SoundHound AI, Inc. and Domo, Inc. across Market position, Key segments, and Exposure to technological disruption:
SoundHound AI, Inc.
- Mid-sized market cap of 4.7B with high beta indicating volatility and competitive pressure.
- Focuses on voice AI platform with revenues mainly from hosted services, licensing, and professional services.
- Positioned in AI voice software, subject to rapid technological innovation and evolving voice interaction trends.
Domo, Inc.
- Smaller market cap of 257M with moderate beta, facing moderate competitive pressure.
- Operates cloud-based business intelligence platform, driven by subscription and professional services revenue.
- Focused on cloud BI solutions, exposed to disruption from emerging data analytics and integration technologies.
SoundHound AI, Inc. vs Domo, Inc. Positioning
SoundHound AI pursues a concentrated strategy in voice AI with diversified revenue streams, while Domo concentrates on cloud BI with dominant subscription revenue. SoundHound’s higher market cap contrasts with Domo’s stronger recurring revenue base.
Which has the best competitive advantage?
Domo demonstrates a very favorable moat with strong ROIC above WACC and growing profitability, indicating durable competitive advantage. SoundHound shows slightly unfavorable moat status despite improving ROIC, reflecting weaker value creation.
Stock Comparison
The past year has shown significant divergence in stock price movements for SoundHound AI, Inc. and Domo, Inc., with SoundHound exhibiting a strong overall upward trajectory despite recent declines, while Domo’s stock has faced sustained downward pressure.
Trend Analysis
SoundHound AI, Inc.’s stock price increased by 183.16% over the past 12 months, indicating a bullish trend with deceleration and a high of 23.95. Recent months show a 37% decline, reflecting a short-term negative slope.
Domo, Inc.’s stock price declined by 44.54% over the same period, confirming a bearish trend with deceleration and a 12-month low of 6.15. The recent 55.11% drop suggests intensifying downward momentum.
Comparatively, SoundHound AI outperformed Domo significantly, delivering the highest market performance over the last year despite recent volatility.
Target Prices
Analysts provide a cautiously optimistic consensus on target prices for SoundHound AI, Inc. and Domo, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| SoundHound AI, Inc. | 15 | 11 | 13.33 |
| Domo, Inc. | 13 | 10 | 11.5 |
For SoundHound AI, the consensus target of 13.33 suggests moderate upside from the current 11.1 price. Domo’s target consensus of 11.5 also indicates potential growth above its current 6.15 price, reflecting positive analyst expectations for both stocks.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial grades for SoundHound AI, Inc. and Domo, Inc.:
Rating Comparison
SOUN Rating
- Rating: C- indicating a very favorable overall rating.
- Discounted Cash Flow Score: 1, very unfavorable valuation.
- ROE Score: 1, very unfavorable efficiency in equity use.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 4, favorable financial stability.
- Overall Score: 1, very unfavorable financial standing.
DOMO Rating
- Rating: C indicating a very favorable overall rating.
- Discounted Cash Flow Score: 1, very unfavorable valuation.
- ROE Score: 5, very favorable efficiency in equity use.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk.
- Overall Score: 2, moderate financial standing.
Which one is the best rated?
Based on the provided data, Domo, Inc. is better rated overall with a moderate overall score of 2 versus SoundHound’s very unfavorable score of 1. Domo’s ROE is significantly stronger, though both have poor discounted cash flow and ROA scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for SoundHound AI and Domo:
SoundHound AI Scores
- Altman Z-Score: 6.62, indicating a safe zone
- Piotroski Score: 3, classified as very weak
Domo Scores
- Altman Z-Score: -10.10, indicating distress zone
- Piotroski Score: 3, classified as very weak
Which company has the best scores?
SoundHound AI has a significantly higher Altman Z-Score, placing it in the safe zone, unlike Domo, which is in distress. Both companies share the same very weak Piotroski Score of 3.
Grades Comparison
The following section presents a comparison of the recent grades assigned to SoundHound AI, Inc. and Domo, Inc. by established grading companies:
SoundHound AI, Inc. Grades
This table summarizes recent grades given to SoundHound AI by recognized financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-12-12 |
| DA Davidson | Maintain | Buy | 2025-11-18 |
| Piper Sandler | Maintain | Neutral | 2025-11-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-16 |
| HC Wainwright & Co. | Maintain | Buy | 2025-09-17 |
| Wedbush | Maintain | Outperform | 2025-09-11 |
| DA Davidson | Maintain | Buy | 2025-09-10 |
| Ladenburg Thalmann | Upgrade | Buy | 2025-08-11 |
| Wedbush | Maintain | Outperform | 2025-08-08 |
SoundHound AI’s grades reveal a generally positive trend, with multiple “Buy,” “Outperform,” and an “Overweight” rating, indicating favorable analyst sentiment.
Domo, Inc. Grades
This table summarizes recent grades given to Domo by recognized financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Lake Street | Maintain | Hold | 2025-12-05 |
| DA Davidson | Maintain | Neutral | 2025-12-01 |
| JMP Securities | Maintain | Market Outperform | 2025-09-10 |
| DA Davidson | Maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-08-28 |
| TD Cowen | Upgrade | Buy | 2025-08-26 |
| JMP Securities | Maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-25 |
Domo’s ratings display a consistent mix of “Buy,” “Overweight,” and “Market Outperform” grades alongside some “Neutral” and “Hold” ratings, reflecting a cautiously optimistic outlook.
Which company has the best grades?
Both SoundHound AI and Domo have consensus “Buy” ratings, but Domo has a higher number of “Buy” grades (9 vs. 5) and multiple “Market Outperform” ratings, suggesting stronger analyst confidence. This may influence investors seeking stocks with broader positive analyst support.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for SoundHound AI, Inc. (SOUN) and Domo, Inc. (DOMO) based on their latest operational and financial data.
| Criterion | SoundHound AI, Inc. (SOUN) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate: Revenue from Hosted Services (57.2M), Licensing (17.6M), Professional Services (9.5M) | Strong: Predominantly Subscription (286M) with Professional Services (31M) |
| Profitability | Unfavorable: Negative net margin (-414%) and ROIC (-68%) indicating value destruction | Improving: Negative net margin (-25.8%) but positive ROE (46.2%) and ROIC (195%) |
| Innovation | Growing ROIC trend shows improving profitability despite current losses | Very Favorable MOAT with durable competitive advantage and growing ROIC |
| Global presence | Limited data on global operations; moderate scale | Larger scale with substantial subscription revenue growth, implying broad market reach |
| Market Share | Smaller scale, niche AI voice and sound recognition market | Larger market share in business intelligence and data analytics subscription services |
Key takeaways: Domo demonstrates a stronger competitive moat with robust value creation and growing profitability, driven by its subscription-based model. SoundHound shows improving innovation and ROIC trends but remains unprofitable and value destructive, signaling higher investment risk.
Risk Analysis
Below is a comparative risk assessment table for SoundHound AI, Inc. (SOUN) and Domo, Inc. (DOMO) based on the most recent financial data and operational context (2024-2025):
| Metric | SoundHound AI, Inc. (SOUN) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | High beta (2.88), volatile price range (6.52-22.17) | Moderate beta (1.65), less volatile (6-18.49) |
| Debt level | Very low debt (Debt/Equity 0.02, Debt/Assets 0.79%) | High debt burden (Debt/Assets 63.23%) |
| Regulatory Risk | Moderate, US-based tech sector exposure | Moderate, US and international operations |
| Operational Risk | Negative profitability ratios, low asset turnover | Mixed profitability, better asset turnover |
| Environmental Risk | Low to moderate, typical for software industry | Low to moderate, typical for software industry |
| Geopolitical Risk | Low, US domestic focus | Moderate, international presence may add risk |
SoundHound AI faces significant market volatility and operational challenges due to deeply negative profitability and efficiency ratios despite a very low debt load and strong liquidity. Domo carries substantial debt and liquidity concerns but demonstrates stronger operational efficiency and profitability metrics. Market risk and operational risk are the most impactful for SoundHound, while debt level and liquidity pose major risks for Domo. Caution is advised with both given their financial fragilities and sector volatility.
Which Stock to Choose?
SoundHound AI, Inc. (SOUN) has seen strong revenue growth of 84.62% in 2024 but suffers from unfavorable profitability with a net margin of -414.06%. Its financial ratios predominantly indicate weakness, despite low debt levels and a very favorable rating of C-. The company is slightly unfavorable in value creation, showing growing ROIC but still destroying value overall.
Domo, Inc. (DOMO) presents a more balanced profile with a 2025 revenue decline of -0.61%, yet it maintains a favorable return on equity of 46.23% and a positive ROIC well above WACC, signaling value creation. Its financial ratios are evenly split between favorable and unfavorable, with a moderate overall rating of C and challenges in liquidity and debt metrics.
For investors prioritizing growth, SOUN’s rapid revenue expansion might appear attractive despite its profitability challenges. Conversely, DOMO’s demonstrated value creation and stronger profitability ratios could be more appealing to those favoring financial stability and quality. Each profile’s risk tolerance and investment strategy could influence how these financial signals are interpreted.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of SoundHound AI, Inc. and Domo, Inc. to enhance your investment decisions:
