Financial Contrast: Sound Group (NASDAQ:SOGP) versus DouYu International (NASDAQ:DOYU)

Sound Group (NASDAQ:SOGP) and DouYu International (NASDAQ:DOYU) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sound Group and DouYu International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	0.00
DouYu International	2	0	0	0	1.00

DouYu International has a consensus target price of $10.25, suggesting a potential upside of 42.76%. Given DouYu International’s stronger consensus rating and higher probable upside, analysts plainly believe DouYu International is more favorable than Sound Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sound Group	N/A	N/A	N/A
DouYu International	-4.39%	-2.92%	-2.38%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$291.80 million	0.04	-$17.84 million	N/A	N/A
DouYu International	$778.94 million	0.29	$5.00 million	($0.88)	-8.16

DouYu International has higher revenue and earnings than Sound Group.

Risk & Volatility

Sound Group has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

1.6% of Sound Group shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 25.2% of Sound Group shares are held by insiders. Comparatively, 17.3% of DouYu International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

DouYu International beats Sound Group on 6 of the 11 factors compared between the two stocks.

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.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.