Contrasting GigaMedia (NASDAQ:GIGM) & Sound Group (NASDAQ:SOGP)

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

Earnings & Valuation

This table compares Sound Group and GigaMedia’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$316.83 million	0.04	$12.54 million	$0.99	2.19
GigaMedia	$4.29 million	3.41	-$3.40 million	($0.37)	-3.58

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	0	0	0	N/A
GigaMedia	0	0	0	0	N/A

Volatility & Risk

Sound Group has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sound Group	1.69%	8.71%	4.96%
GigaMedia	-109.81%	-8.94%	-8.37%

Institutional and Insider Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 13.5% of GigaMedia shares are owned by institutional investors. 25.2% of Sound Group shares are owned by company insiders. Comparatively, 1.0% of GigaMedia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Sound Group beats GigaMedia on 9 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 GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. It operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. The company offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. The company was founded in 1998 and is headquartered in Taipei, Taiwan.