In the rapidly evolving tech landscape, SoundHound AI, Inc. (SOUN) and Perfect Corp. (PERF) stand out as innovators in artificial intelligence applications. Both companies operate in the software industry, focusing on AI-driven solutions—SoundHound with voice AI platforms and Perfect Corp. with augmented reality beauty tech. This comparison explores their market approaches and innovation strategies to help you decide which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between SoundHound AI, Inc. and Perfect Corp. by providing an overview of these two companies and their main differences.
SoundHound AI, Inc. Overview
SoundHound AI, Inc. develops an independent voice artificial intelligence platform aimed at enabling businesses across industries to deliver high-quality conversational experiences. Its flagship product, Houndify, offers tools such as automatic speech recognition and natural language understanding. The company is based in Santa Clara, California, operates in the software application industry, and has a market capitalization of approximately 4.7B USD.
Perfect Corp. Overview
Perfect Corp. provides SaaS artificial intelligence and augmented reality solutions tailored to beauty and fashion technology. Its offerings include AR virtual try-on tools and AI-powered analysis for makeup, hair, and accessories. Founded in 2015 and headquartered in New Taipei City, Taiwan, Perfect Corp. operates in the software application sector with a market cap near 179M USD.
Key similarities and differences
Both companies operate within the technology sector focusing on AI-driven software applications, but SoundHound AI emphasizes voice recognition platforms while Perfect Corp. specializes in AI and AR solutions for beauty and fashion. SoundHound AI is significantly larger in market cap and employee count, reflecting its broader industry reach. Meanwhile, Perfect Corp. targets a niche market with specialized consumer-facing virtual try-on technologies.
Income Statement Comparison
The table below compares key income statement metrics for the fiscal year 2024 between SoundHound AI, Inc. and Perfect Corp., highlighting their financial performance and earnings per share.
| Metric | SoundHound AI, Inc. | Perfect Corp. |
|---|---|---|
| Market Cap | 4.7B | 179M |
| Revenue | 85M | 60M |
| EBITDA | -329M | -2M |
| EBIT | -348M | -3M |
| Net Income | -351M | 5M |
| EPS | -1.04 | 0.05 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
SoundHound AI, Inc.
SoundHound AI’s revenue grew substantially from $13M in 2020 to $85M in 2024, reflecting a strong upward trend. However, net income remained deeply negative, worsening from -$77M to -$351M over the period. While the gross margin is favorable at 48.9%, operating and net margins are significantly negative, reflecting high expenses and losses in recent years, with 2024 showing revenue growth but deteriorating profits.
Perfect Corp.
Perfect Corp. demonstrated steady revenue growth from $29.9M in 2020 to $60.2M in 2024, with net income turning positive to $5M in 2024 after previous losses. The company maintains a strong gross margin near 78%, and despite a slightly negative EBIT margin, it has improved its net margin to 8.3% in 2024. Recent growth is moderate but accompanied by improved profitability and controlled expenses.
Which one has the stronger fundamentals?
Perfect Corp. exhibits stronger fundamentals with consistently favorable gross margins and positive net income growth, achieving profitability in the latest fiscal year. In contrast, SoundHound AI shows higher revenue growth but continues to struggle with substantial losses and unfavorable margins, suggesting more financial risk despite revenue expansion.
Financial Ratios Comparison
The table below presents the most recent financial ratios for SoundHound AI, Inc. and Perfect Corp., providing a snapshot of their profitability, liquidity, leverage, efficiency, and shareholder returns as of fiscal year 2024.
| Ratios | SoundHound AI, Inc. (SOUN) | Perfect Corp. (PERF) |
|---|---|---|
| ROE | -191.99% | 3.42% |
| ROIC | -68.13% | -2.10% |
| P/E | -19.15 | 56.6 |
| P/B | 36.76 | 1.93 |
| Current Ratio | 3.77 | 5.52 |
| Quick Ratio | 3.77 | 5.52 |
| D/E (Debt-to-Equity) | 0.02 | 0.0035 |
| Debt-to-Assets | 0.79% | 0.28% |
| Interest Coverage | -28.05 | -449 |
| Asset Turnover | 0.15 | 0.33 |
| Fixed Asset Turnover | 14.28 | 57.94 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
SoundHound AI, Inc.
SoundHound AI shows mostly unfavorable ratios with a negative net margin of -414.06% and return on equity at -191.99%, indicating weak profitability and efficiency. The company’s quick ratio is favorable at 3.77, but current ratio and interest coverage are concerns. It does not pay dividends, likely due to ongoing investments in R&D and growth, as reflected by high research expenses.
Perfect Corp.
Perfect Corp. presents a mixed ratio picture with a moderate net margin of 8.34%, but some unfavorable metrics like return on equity at 3.42% and negative return on invested capital. The company maintains a strong quick ratio of 5.52 and low debt levels. It also does not pay dividends, suggesting reinvestment into its AI and AR technology focus for future growth.
Which one has the best ratios?
Both companies have 35.71% favorable ratios, but SoundHound AI’s higher proportion of unfavorable ratios at 64.29% compared to Perfect Corp.’s 50% makes its financial health appear weaker. Perfect Corp.’s slightly unfavorable overall rating and neutral net margin suggest it holds a relatively better ratio profile despite some concerns.
Strategic Positioning
This section compares the strategic positioning of SoundHound AI and Perfect Corp., focusing on market position, key segments, and exposure to technological disruption:
SoundHound AI, Inc.
- Mid-cap software firm operating in voice AI, facing strong competitive pressure in conversational AI platforms.
- Key segments include Hosted Services, Licensing, and Professional Services driven by voice AI platform solutions.
- Exposure to disruption through ongoing AI advancements in voice recognition and conversational interfaces.
Perfect Corp.
- Small-cap software company focused on AI and AR beauty and fashion tech, operating in a niche market segment.
- Focuses on SaaS AI and AR applications for virtual try-ons and beauty tech, with multiple consumer apps.
- Faces disruption risks in AI and AR technologies, innovating in virtual beauty and fashion experiences.
SoundHound AI vs Perfect Corp. Positioning
SoundHound AI has a diversified business model with multiple revenue streams in voice AI services, while Perfect Corp. is more concentrated on AI and AR beauty tech solutions. SoundHound’s broader market scope contrasts with Perfect’s specialized niche focus.
Which has the best competitive advantage?
Both companies show slightly unfavorable MOATs with ROIC below WACC, indicating value destruction despite improving profitability. Neither currently demonstrates a clear sustainable competitive advantage based on the MOAT evaluation.
Stock Comparison
The stock price chart highlights significant volatility for SoundHound AI, Inc. with strong gains over the past year, while Perfect Corp. shows a consistent downward trajectory, reflecting contrasting trading dynamics and investor sentiment.
Trend Analysis
SoundHound AI, Inc. (SOUN) experienced a bullish trend over the past 12 months with a 183.16% price increase and decelerating momentum. Recent months saw a -37.0% pullback, indicating short-term weakness.
Perfect Corp. (PERF) displayed a bearish trend over the same period, with a -28.98% price decline and deceleration. The recent trend remained negative, with a -9.84% decrease and low volatility.
Comparing both, SoundHound AI, Inc. delivered the highest market performance with strong overall gains, while Perfect Corp. faced sustained downward pressure throughout the year.
Target Prices
Analysts provide a clear target price consensus indicating potential upside for these technology companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| SoundHound AI, Inc. | 15 | 11 | 13.33 |
| Perfect Corp. | 7 | 7 | 7 |
SoundHound AI’s consensus target price of 13.33 suggests moderate upside from its current 11.1, while Perfect Corp.’s consensus at 7 indicates significant potential gain from its current 1.74. Overall, analysts expect positive price appreciation.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for SoundHound AI, Inc. (SOUN) and Perfect Corp. (PERF):
Rating Comparison
SOUN Rating
- Rating: C-, considered very favorable despite a low grade.
- Discounted Cash Flow Score: 1, indicating very unfavorable valuation outlook.
- ROE Score: 1, showing very unfavorable profit generation from equity.
- ROA Score: 1, very unfavorable asset utilization effectiveness.
- Debt To Equity Score: 4, favorable financial risk profile with balanced debt.
- Overall Score: 1, very unfavorable overall financial score.
PERF Rating
- Rating: A-, rated very favorable with a strong overall standing.
- Discounted Cash Flow Score: 5, reflecting a very favorable valuation outlook.
- ROE Score: 2, a moderate efficiency in generating profit from equity.
- ROA Score: 3, moderate effectiveness in asset utilization.
- Debt To Equity Score: 4, similarly favorable, indicating reasonable leverage.
- Overall Score: 4, a favorable overall financial score.
Which one is the best rated?
Based strictly on the provided data, Perfect Corp. (PERF) is better rated than SoundHound AI (SOUN) across all key financial scores and overall rating. PERF demonstrates stronger financial health and valuation metrics.
Scores Comparison
Here is a comparison of the financial scores for SoundHound AI, Inc. and Perfect Corp.:
SoundHound AI, Inc. Scores
- Altman Z-Score: 6.62, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 3, classified as very weak financial strength.
Perfect Corp. Scores
- Altman Z-Score: 1.31, indicating a distress zone with high bankruptcy risk.
- Piotroski Score: 6, classified as average financial strength.
Which company has the best scores?
SoundHound AI, Inc. has a significantly higher Altman Z-Score, placing it in the safe zone, while Perfect Corp. falls in the distress zone. Conversely, Perfect Corp. shows a stronger Piotroski Score compared to SoundHound AI’s very weak rating.
Grades Comparison
Here is a comparison of the latest reliable grades for SoundHound AI, Inc. and Perfect Corp.:
SoundHound AI, Inc. Grades
The following table summarizes recent grades and actions from reputable grading companies for SoundHound AI, Inc.:
| 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 |
Overall, SoundHound AI has consistently received buy or outperform grades, with some recent neutral ratings and a consensus rating of Buy.
Perfect Corp. Grades
The following table summarizes recent grades and actions from reputable grading companies for Perfect Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2024-02-29 |
| Goldman Sachs | Maintain | Neutral | 2023-10-26 |
| Piper Sandler | Maintain | Neutral | 2023-10-25 |
| Piper Sandler | Maintain | Neutral | 2023-07-26 |
| Piper Sandler | Maintain | Neutral | 2023-07-25 |
| Piper Sandler | Maintain | Neutral | 2023-04-27 |
| Oppenheimer | Downgrade | Perform | 2023-04-20 |
| Oppenheimer | Downgrade | Perform | 2023-04-19 |
| Oppenheimer | Downgrade | Perform | 2023-04-18 |
| Piper Sandler | Maintain | Neutral | 2023-03-08 |
Perfect Corp. shows predominantly neutral grades with some downgrades to perform, and a consensus rating of Hold.
Which company has the best grades?
SoundHound AI holds the stronger set of grades with multiple buy and outperform ratings, contrasting with Perfect Corp.’s consistent neutral and downgraded perform grades. This suggests potentially higher analyst confidence in SoundHound AI’s outlook, possibly influencing investor sentiment accordingly.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for SoundHound AI, Inc. (SOUN) and Perfect Corp. (PERF) based on their recent financial and strategic data.
| Criterion | SoundHound AI, Inc. (SOUN) | Perfect Corp. (PERF) |
|---|---|---|
| Diversification | Moderate: Revenue from Hosted Services (57.2M), Licensing (17.6M), Professional Services (9.5M) | Limited data on diversification; primarily focused on core technologies |
| Profitability | Weak: Negative net margin (-414%), ROIC -68%, shedding value | Modest: Positive net margin (8.3%), ROIC slightly negative (-2.1%), shedding value but improving |
| Innovation | Growing ROIC trend (+57%), indicating improving profitability | Growing ROIC trend (+45.8%), signaling innovation payoff but still unprofitable |
| Global presence | Expanding Hosted Services segment suggests growing market reach | Strong global positioning implied by business model, but less detailed data |
| Market Share | Small asset turnover (0.15) suggests limited efficiency | Higher asset turnover (0.33) but still below ideal, indicating room for growth |
Key takeaways: Both companies are currently shedding value but show improving profitability trends. SoundHound AI has a more diversified revenue base, while Perfect Corp. demonstrates slightly better operational efficiency. Investors should weigh growth potential against ongoing profitability challenges.
Risk Analysis
Below is a comparative risk assessment table for SoundHound AI, Inc. (SOUN) and Perfect Corp. (PERF) based on the most recent available data from 2024.
| Metric | SoundHound AI, Inc. (SOUN) | Perfect Corp. (PERF) |
|---|---|---|
| Market Risk | High beta (2.88), volatile price range (6.52-22.17) | Low beta (0.45), stable price range (1.51-2.87) |
| Debt level | Very low debt-to-equity (0.02), low debt-to-assets (0.79%) | Near zero debt-to-equity (0.0), very low debt-to-assets (0.28%) |
| Regulatory Risk | Moderate, US tech sector exposure | Moderate, Taiwan tech regulations |
| Operational Risk | Negative net margin (-414%), weak profitability ratios | Modest net margin (8.3%), some inefficiency (ROIC -2.1%) |
| Environmental Risk | Low direct exposure reported | Low direct exposure reported |
| Geopolitical Risk | US-based, moderate trade tensions risk | Taiwan-based, higher geopolitical risk due to regional tensions |
SoundHound AI faces significant market volatility and operational challenges with deeply negative profitability and unfavorable financial ratios, despite strong liquidity and low debt. Perfect Corp. shows better financial stability but struggles with efficiency and carries heightened geopolitical risk given its Taiwan base. Market risk and operational weaknesses are the most impactful concerns for SOUN, while geopolitical and moderate operational risks are key for PERF.
Which Stock to Choose?
SoundHound AI, Inc. (SOUN) shows strong revenue growth of 551% over 2020-2024 but suffers from unfavorable profitability with a net margin of -414% and negative returns on equity and invested capital. Its debt levels are low, reflected by a favorable debt-to-equity ratio, yet its overall financial ratios and rating remain unfavorable, assigned a very unfavorable global score despite a bullish longer-term price trend.
Perfect Corp. (PERF) demonstrates moderate revenue growth of 102% over the same period with a favorable net margin of 8.3% and positive earnings yield. Although profitability ratios such as ROE and ROIC are slightly unfavorable, the company maintains low debt and favorable liquidity ratios. Its overall rating is very favorable with a moderate to favorable financial ratios evaluation, despite a bearish price trend over the past year.
Considering the ratings and comprehensive income and financial ratio evaluations, SOUN’s profile might appeal to risk-tolerant investors seeking high growth potential but facing profitability challenges. Conversely, PERF’s profile could be more aligned with investors favoring stable income and stronger financial health, despite less aggressive growth. Both companies exhibit slightly unfavorable economic moats, indicating ongoing value challenges but improving profitability.
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 Perfect Corp. to enhance your investment decisions:
