In today’s fast-evolving tech landscape, monday.com Ltd. and SoundHound AI, Inc. stand out as innovative leaders in the software application industry. While monday.com focuses on visual work operating systems for project and workflow management, SoundHound AI pioneers conversational voice AI platforms. Their overlapping markets and distinct innovation strategies make them compelling subjects for comparison. Join me as I analyze which company offers the most promising investment opportunity for your portfolio.
Table of contents
Companies Overview
I will begin the comparison between monday.com Ltd. and SoundHound AI, Inc. by providing an overview of these two companies and their main differences.
monday.com Ltd. Overview
monday.com Ltd. develops cloud-based software applications designed to enhance work management through its visual Work OS platform. It offers modular building blocks for creating customized applications across marketing, CRM, project management, and software development. Headquartered in Tel Aviv, Israel, monday.com serves a diverse clientele including organizations, educational institutions, and government entities, positioning itself as a versatile player in the software application industry.
SoundHound AI, Inc. Overview
SoundHound AI, Inc. specializes in voice artificial intelligence platforms that enable businesses to create conversational voice assistants. Its flagship product, the Houndify platform, incorporates technologies like automatic speech recognition and natural language understanding to enhance customer interactions. Based in Santa Clara, California, SoundHound focuses on delivering advanced voice AI solutions across various industries, carving out a niche in the software application sector.
Key similarities and differences
Both companies operate within the software application industry, emphasizing innovative technology solutions to enhance business processes and customer engagement. monday.com focuses on work management software with customizable applications, while SoundHound AI centers on voice AI platforms for conversational experiences. They differ in market capitalization, with monday.com at approximately 6.5B USD and SoundHound AI at 4.7B USD, and also in employee count, reflecting their varied scale and operational focus.
Income Statement Comparison
Below is a side-by-side comparison of key income statement metrics for monday.com Ltd. and SoundHound AI, Inc. for the fiscal year 2024.
| Metric | monday.com Ltd. (MNDY) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Market Cap | 6.53B | 4.66B |
| Revenue | 972M | 85M |
| EBITDA | 58M | -329M |
| EBIT | 40M | -348M |
| Net Income | 32M | -351M |
| EPS | 0.65 | -1.04 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
monday.com Ltd.
monday.com Ltd. demonstrated strong revenue growth from 2020 to 2024, rising from 161M to 972M USD, with net income turning positive in 2024 at 32M USD after several years of losses. Gross margins remained high and favorable at 89.33%, while net and EBIT margins were neutral but improving. The recent year showed a significant profitability rebound, supported by a 33.2% revenue increase and sharply improved net margin.
SoundHound AI, Inc.
SoundHound AI’s revenue grew substantially from 13M in 2020 to 85M USD in 2024, an 84.6% increase in the last year alone. However, net income remained deeply negative at -351M USD in 2024, with unfavorable net and EBIT margins of around -414% and -411% respectively. Despite positive gross margins near 49%, operating expenses grew faster than revenue, continuing to pressure profitability in the latest year.
Which one has the stronger fundamentals?
monday.com Ltd. shows stronger fundamentals with consistent revenue and net income growth, a high and stable gross margin, and improving profitability metrics, reflecting favorable overall income statement evaluations. In contrast, SoundHound AI presents revenue growth but sustained heavy losses and unfavorable margins, indicating weaker income fundamentals despite some positive gross margin trends.
Financial Ratios Comparison
The table below provides a side-by-side comparison of key financial ratios for monday.com Ltd. (MNDY) and SoundHound AI, Inc. (SOUN) based on their most recent fiscal year data for 2024.
| Ratios | monday.com Ltd. (MNDY) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| ROE | 3.14% | -191.99% |
| ROIC | -1.73% | -68.13% |
| P/E | 363 | -19.15 |
| P/B | 11.41 | 36.76 |
| Current Ratio | 2.66 | 3.77 |
| Quick Ratio | 2.66 | 3.77 |
| D/E (Debt-to-Equity) | 0.10 | 0.02 |
| Debt-to-Assets | 6.29% | 0.79% |
| Interest Coverage | 0 | -28.05 |
| Asset Turnover | 0.58 | 0.15 |
| Fixed Asset Turnover | 7.13 | 14.28 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
monday.com Ltd.
monday.com Ltd. shows a mixed ratio profile with favorable liquidity ratios, including a strong current ratio of 2.66 and low debt levels (debt-to-equity 0.1). However, profitability metrics such as net margin (3.33%), return on equity (3.14%), and return on invested capital (-1.73%) are weak. The company does not pay dividends, likely reflecting reinvestment priorities amid modest returns.
SoundHound AI, Inc.
SoundHound AI’s ratios predominantly signal challenges, with highly negative profitability figures: net margin at -414%, ROE at -192%, and ROIC at -68%. Liquidity is mixed with a favorable quick ratio but an unfavorable current ratio of 3.77. No dividends are paid, consistent with significant losses and a probable focus on growth and R&D investment.
Which one has the best ratios?
Comparing both, monday.com Ltd. presents a more balanced and neutral ratio profile, with solid liquidity and manageable debt but low profitability. SoundHound AI’s ratios are mostly unfavorable, reflecting deep losses and weaker operational efficiency. Overall, monday.com Ltd. exhibits relatively better financial health based on the available ratio data.
Strategic Positioning
This section compares the strategic positioning of monday.com Ltd. and SoundHound AI, Inc., focusing on Market position, Key segments, and Exposure to technological disruption:
monday.com Ltd.
- Established global software application provider with diverse clients; faces moderate competitive pressure.
- Offers Work OS platform for work management, project management, and CRM; serves organizations, educational, government sectors.
- Positioned in cloud-based work OS software; technological disruption risk moderate with evolving software tools.
SoundHound AI, Inc.
- Smaller market cap with high volatility; operates in a niche voice AI market under strong competition.
- Revenue mainly from Hosted Services, Licensing, and Professional Services focused on conversational AI tools.
- Focused on voice AI platforms, exposed to rapid AI and speech recognition technological changes.
monday.com Ltd. vs SoundHound AI, Inc. Positioning
monday.com pursues a diversified approach with broad sector coverage and modular software solutions, while SoundHound AI concentrates on voice AI products with specific revenue streams. monday.com’s broad market presence contrasts with SoundHound’s focused innovation in conversational AI.
Which has the best competitive advantage?
Both companies are currently shedding value relative to their cost of capital but show improving profitability trends. monday.com’s larger scale and diversified offering may provide a more stable competitive position than SoundHound’s niche focus and higher volatility.
Stock Comparison
The stock price movements of monday.com Ltd. (MNDY) and SoundHound AI, Inc. (SOUN) over the past 12 months exhibit contrasting dynamics, with MNDY undergoing a pronounced decline and SOUN showing significant long-term gains despite recent weakness.
Trend Analysis
monday.com Ltd. (MNDY) experienced a bearish trend over the past year with a price decline of 39.06%, accompanied by high volatility (std deviation 47.32). The downtrend shows deceleration and a recent loss of 38.27%.
SoundHound AI, Inc. (SOUN) recorded a bullish trend during the same period, gaining 183.16% with low volatility (std deviation 4.66). However, recent months reveal a decelerating trend with a 37.0% drop.
Comparing both stocks, SOUN delivered the highest market performance over the last 12 months despite recent losses, outperforming MNDY’s sustained bearish decline.
Target Prices
The consensus target prices from analysts suggest potential upside for both monday.com Ltd. and SoundHound AI, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| monday.com Ltd. | 330 | 194 | 264.42 |
| SoundHound AI, Inc. | 15 | 11 | 13.33 |
Analysts expect monday.com Ltd.’s stock to nearly double from its current price of $126.7, while SoundHound AI’s target suggests a moderate increase from $11.1, indicating cautious optimism in both cases.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for monday.com Ltd. and SoundHound AI, Inc.:
Rating Comparison
monday.com Ltd. Rating
- Rating: B-, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable cash flow valuation.
- ROE Score: 3, moderate efficiency in generating profit from equity.
- ROA Score: 3, moderate asset utilization effectiveness.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 3, moderate overall financial standing.
SoundHound AI, Inc. Rating
- Rating: C-, also marked very favorable despite lower scores.
- Discounted Cash Flow Score: 1, showing very unfavorable valuation.
- ROE Score: 1, very unfavorable profit generation from equity.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 4, favorable low financial risk.
- Overall Score: 1, very unfavorable overall financial standing.
Which one is the best rated?
Based strictly on the data, monday.com Ltd. is better rated with a B- rating and moderate to favorable scores in key financial metrics. SoundHound AI, Inc. holds a lower C- rating with mostly very unfavorable scores, except for a favorable debt-to-equity score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for monday.com Ltd. and SoundHound AI, Inc.:
monday.com Ltd. Scores
- Altman Z-Score: 6.33, indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 5, representing average financial strength.
SoundHound AI, Inc. Scores
- Altman Z-Score: 6.62, indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 3, indicating very weak financial strength.
Which company has the best scores?
Both companies have Altman Z-Scores in the safe zone, indicating low bankruptcy risk. However, monday.com Ltd. shows a stronger Piotroski Score (5 vs. 3), suggesting better overall financial health compared to SoundHound AI, Inc.
Grades Comparison
The following presents the most recent and reliable grade data for monday.com Ltd. and SoundHound AI, Inc.:
monday.com Ltd. Grades
This table summarizes the latest grades and rating actions from recognized financial institutions for monday.com Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BTIG | Maintain | Buy | 2026-01-15 |
| Barclays | Maintain | Overweight | 2026-01-12 |
| Jefferies | Maintain | Buy | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-12-23 |
| Tigress Financial | Maintain | Buy | 2025-12-11 |
| Baird | Maintain | Outperform | 2025-11-11 |
| Wells Fargo | Maintain | Overweight | 2025-11-11 |
| DA Davidson | Maintain | Buy | 2025-11-11 |
| Morgan Stanley | Maintain | Overweight | 2025-11-11 |
| Piper Sandler | Maintain | Overweight | 2025-11-11 |
The grades for monday.com Ltd. consistently indicate positive sentiment, with multiple Buy and Overweight ratings maintained over recent months.
SoundHound AI, Inc. Grades
Below is a summary of recent grades for SoundHound AI, Inc. from established grading firms:
| 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, Inc.’s grades show a mix of Buy, Outperform, Overweight, and Neutral ratings, with some recent upgrades indicating improving sentiment.
Which company has the best grades?
monday.com Ltd. has received a larger number of consistent Buy and Overweight ratings compared to SoundHound AI, Inc., whose grades show more variation including Neutral ratings. This pattern may suggest stronger analyst confidence in monday.com Ltd., potentially affecting investor perception of stability and growth prospects.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses of monday.com Ltd. (MNDY) and SoundHound AI, Inc. (SOUN) based on the latest financial and operational data.
| Criterion | monday.com Ltd. (MNDY) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Diversification | Moderate product focus, primarily on work management software | More diversified revenue streams: Hosted Services (57.2M), Licensing (17.6M), Professional Services (9.5M) |
| Profitability | Low profitability: ROIC -1.73%, Net Margin 3.33%, ROE 3.14% (unfavorable) | Negative profitability: ROIC -68.13%, Net Margin -414%, ROE -192% (unfavorable) |
| Innovation | Growing ROIC trend indicates improving operational efficiency | Growing ROIC trend but still heavily value destructive, indicating innovation efforts yet to translate into profit |
| Global presence | Strong global presence with scalable SaaS platform | Global footprint supported by cloud-hosted services and licensing |
| Market Share | Established position in project management software | Niche AI voice recognition and conversational intelligence market, smaller market share |
Key takeaways: Both companies are currently value destructive but show growing profitability trends, indicating potential for improvement. monday.com benefits from steadier profitability and a focused product, while SoundHound’s diversified revenue base supports growth despite high losses. Investors should approach both cautiously, weighing innovation potential against current financial challenges.
Risk Analysis
Below is a comparative overview of key risks for monday.com Ltd. (MNDY) and SoundHound AI, Inc. (SOUN) based on the most recent data from 2024:
| Metric | monday.com Ltd. (MNDY) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Market Risk | Beta 1.255, moderate volatility | Beta 2.879, high volatility |
| Debt level | Low debt-to-equity 0.10, favorable | Very low debt-to-equity 0.02, favorable |
| Regulatory Risk | Moderate, operates internationally | Moderate, US-focused with emerging tech risks |
| Operational Risk | Moderate, with 2.5K employees | Higher, smaller scale with 842 employees |
| Environmental Risk | Low, software-based business | Low, software-based business |
| Geopolitical Risk | Moderate, headquartered in Israel | Moderate, headquartered in US |
The most impactful risks are market volatility and operational challenges. SoundHound exhibits higher market risk due to its beta of 2.879 and weaker profitability, increasing investment risk. monday.com shows stronger financial stability but faces pressure from unfavorable valuation metrics and moderate operational risks in international markets. Investors should weigh volatility and profitability carefully.
Which Stock to Choose?
monday.com Ltd. (MNDY) shows a favorable income evolution with strong revenue and net income growth over 2020-2024. Its financial ratios are neutral overall, with a solid current ratio and low debt. Profitability is modest but improving, while it maintains a slightly unfavorable moat due to ROIC below WACC. The company holds a very favorable rating with moderate scores in key areas.
SoundHound AI, Inc. (SOUN) exhibits unfavorable income trends, including negative EBIT and net margins despite strong revenue growth. Its financial ratios are mostly unfavorable, with concerns on profitability and asset turnover, though debt levels are low. The moat status is slightly unfavorable, reflecting value destruction despite growing ROIC. Rating remains very favorable but with weak overall financial scores.
Investors with a risk-tolerant or growth-oriented profile might find monday.com Ltd.’s improving profitability and neutral financial ratios more appealing, while those focused on speculative growth or turnaround potential could consider SoundHound AI, despite its current financial weaknesses and unfavorable income statement. The ratings and global evaluations suggest differing risk and performance profiles that could influence investor preferences.
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 monday.com Ltd. and SoundHound AI, Inc. to enhance your investment decisions:
