Head-To-Head Review: SoundThinking (NASDAQ:SSTI) versus JFrog (NASDAQ:FROG)

JFrog (NASDAQ:FROG) and SoundThinking (NASDAQ:SSTI) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Earnings and Valuation

This table compares JFrog and SoundThinking”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFrog	$531.84 million	21.56	-$71.82 million	($0.37)	-251.35
SoundThinking	$97.96 million	0.77	-$9.42 million	($1.29)	-4.51

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

Institutional and Insider Ownership

85.0% of JFrog shares are held by institutional investors. Comparatively, 60.7% of SoundThinking shares are held by institutional investors. 11.8% of JFrog shares are held by company insiders. Comparatively, 10.9% of SoundThinking shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for JFrog and SoundThinking, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFrog	1	1	21	0	2.87
SoundThinking	1	5	1	0	2.00

JFrog currently has a consensus price target of $109.48, suggesting a potential upside of 17.72%. SoundThinking has a consensus price target of $10.83, suggesting a potential upside of 86.14%. Given SoundThinking’s higher probable upside, analysts clearly believe SoundThinking is more favorable than JFrog.

Profitability

This table compares JFrog and SoundThinking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JFrog	-7.35%	-2.71%	-1.80%
SoundThinking	-16.92%	-23.77%	-12.90%

Volatility & Risk

JFrog has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, SoundThinking has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

JFrog beats SoundThinking on 11 of the 14 factors compared between the two stocks.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

About SoundThinking

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.