SoundHound AI and C3.ai have been developing AI-powered products since before the generative AI boom in late 2022. C3.ai trades at 5.5 times sales, while SoundHound AI trades at 31 times sales. Both companies are unprofitable growth stocks, with SoundHound AI growing faster.

Both companies were founded in 2009 (C3.ai) and 2005 (SoundHound AI) and have founders actively involved in running the companies. SoundHound AI focuses on AI-driven voice controls, while C3.ai has changed names and industries over time. SoundHound AI’s single-minded focus gives it an edge in this round.

SoundHound AI and C3.ai are both growth stocks burning cash for revenue growth. However, SoundHound AI’s revenue growth outpaces C3.ai’s, with a backlog of long-term contracts worth $1.2 billion. SoundHound AI is the preferable choice in this round due to its faster growth.

In terms of valuation, C3.ai trades at 5.5 times sales, while SoundHound AI trades at 31 times sales. Despite SoundHound AI’s superior sales growth, C3.ai wins this round for being more affordable. However, SoundHound AI emerges as the winner overall due to its sharper AI focus, faster growth, and contracted future revenue.

Investors should consider buying stock in SoundHound AI, as it is the better stock to buy today. While C3.ai is not a bad company, SoundHound AI’s metrics of sharper AI focus, faster growth, and future revenue make it a more attractive investment option. SoundHound AI takes home the championship belt in this comparison.

Read more at Nasdaq: Better AI Stock: SoundHound AI vs. C3.ai