Contrasting DouYu International (NASDAQ:DOYU) & Sound Group (NASDAQ:SOGP)

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and target prices for DouYu International and Sound Group, as reported by MarketBeat.com.

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

DouYu International currently has a consensus target price of $10.25, indicating a potential downside of 36.47%. Given DouYu International’s stronger consensus rating and higher probable upside, equities analysts clearly believe DouYu International is more favorable than Sound Group.

Risk and Volatility

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$778.94 million	0.66	$5.00 million	($0.88)	-18.34
Sound Group	$291.80 million	0.04	-$17.84 million	N/A	N/A

DouYu International has higher revenue and earnings than Sound Group.

Institutional and Insider Ownership

17.9% of DouYu International shares are owned by institutional investors. Comparatively, 1.6% of Sound Group shares are owned by institutional investors. 17.3% of DouYu International shares are owned by company insiders. Comparatively, 25.2% of Sound Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

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.

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.