Analyzing Singing Machine (NASDAQ:MICS) and Algorhythm (NASDAQ:RIME)

Algorhythm (NASDAQ:RIME) and Singing Machine (NASDAQ:MICS) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

Algorhythm has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Singing Machine has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Algorhythm and Singing Machine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algorhythm	0	0	0	1	4.00
Singing Machine	0	0	0	0	0.00

Algorhythm presently has a consensus target price of $5.00, suggesting a potential upside of 56.74%. Given Algorhythm’s stronger consensus rating and higher probable upside, equities analysts clearly believe Algorhythm is more favorable than Singing Machine.

Earnings & Valuation

This table compares Algorhythm and Singing Machine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algorhythm	$23.06 million	0.35	N/A	N/A	N/A
Singing Machine	$29.05 million	0.44	-$2.37 million	N/A	N/A

Algorhythm has higher earnings, but lower revenue than Singing Machine.

Profitability

This table compares Algorhythm and Singing Machine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algorhythm	N/A	-198.73%	-36.64%
Singing Machine	N/A	-155.23%	-36.24%

About Algorhythm

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.

About Singing Machine

The Singing Machine Company, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The Singing Machine Company, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.