Comparing HUYA (NYSE:HUYA) and Sound Group (NASDAQ:SOGP)

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

Profitability

This table compares Sound Group and HUYA’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
HUYA	-2.51%	0.30%	0.23%

Insider & Institutional Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 25.2% of Sound Group shares are owned by company insiders. Comparatively, 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Sound Group and HUYA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$291.80 million	0.03	-$17.84 million	$0.99	1.82
HUYA	$985.13 million	0.78	-$28.81 million	($0.09)	-36.78

Sound Group has higher earnings, but lower revenue than HUYA. HUYA is trading at a lower price-to-earnings ratio than Sound Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sound Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Sound Group and HUYA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	0.00
HUYA	0	4	2	0	2.33

HUYA has a consensus price target of $5.68, suggesting a potential upside of 71.45%. Given HUYA’s stronger consensus rating and higher probable upside, analysts plainly believe HUYA is more favorable than Sound Group.

Summary

HUYA beats Sound Group on 8 of the 14 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 HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.