Financial Analysis: Aurora Innovation (NASDAQ:AUR) & SoundThinking (NASDAQ:SSTI)

Aurora Innovation (NASDAQ:AURGet Free Report) and SoundThinking (NASDAQ:SSTIGet Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Risk and Volatility

Aurora Innovation has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500. Comparatively, SoundThinking has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

44.7% of Aurora Innovation shares are held by institutional investors. Comparatively, 60.7% of SoundThinking shares are held by institutional investors. 8.5% of Aurora Innovation shares are held by insiders. Comparatively, 10.9% of SoundThinking shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Aurora Innovation and SoundThinking, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aurora Innovation 2 2 8 0 2.50
SoundThinking 1 5 1 0 2.00

Aurora Innovation currently has a consensus price target of $12.67, suggesting a potential upside of 105.13%. SoundThinking has a consensus price target of $10.83, suggesting a potential upside of 95.55%. Given Aurora Innovation’s stronger consensus rating and higher possible upside, research analysts clearly believe Aurora Innovation is more favorable than SoundThinking.

Profitability

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

Net Margins Return on Equity Return on Assets
Aurora Innovation -18,000.00% -43.94% -39.85%
SoundThinking -16.92% -23.77% -12.90%

Valuation and Earnings

This table compares Aurora Innovation and SoundThinking”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aurora Innovation $3.00 million 4,125.23 -$816.00 million ($0.47) -13.14
SoundThinking $104.13 million 0.69 -$9.42 million ($1.29) -4.29

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

Summary

SoundThinking beats Aurora Innovation on 8 of the 14 factors compared between the two stocks.

About Aurora Innovation

(Get Free Report)

Aurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate vehicles. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.

About SoundThinking

(Get Free Report)

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.

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