SOUN vs. RCAT

Last updated Jun 13, 2026

SOUN (SoundHound AI, Inc.) and RCAT (Red Cat Holdings, Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 3 years, SOUN returned 29.87%/yr vs 131.59%/yr for RCAT. At a 0.25 correlation, their price movements are largely independent.

Performance

SOUN vs. RCAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SoundHound AI, Inc. (SOUN) and Red Cat Holdings, Inc. (RCAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SOUN achieves a -30.79% return, which is significantly lower than RCAT's 40.98% return.

SOUN

• 1D: -1.43%
• 1M: -18.05%
• YTD: -30.79%
• 6M: -40.77%
• 1Y: -27.14%
• 3Y*: 29.87%
• 5Y*: —
• 10Y*: —

RCAT

• 1D: -6.91%
• 1M: 18.94%
• YTD: 40.98%
• 6M: 39.05%
• 1Y: 27.77%
• 3Y*: 131.59%
• 5Y*: 26.88%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SOUN vs. RCAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SOUN SoundHound AI, Inc.	-30.79%	-49.75%	835.85%	19.77%	-79.70%
RCAT Red Cat Holdings, Inc.	40.98%	-38.29%	1,360.23%	-6.38%	-56.28%

Correlation

The correlation between SOUN and RCAT is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (All Time) Calculated using the full available price history since Apr 28, 2022	0.25

Over the past year, SOUN and RCAT have become more correlated (0.49) than their long-term average of 0.25, meaning their price movements have been converging.

Fundamentals

Market Cap SOUN : $2.34B RCAT : $1.35B
EPS SOUN : -$0.43 RCAT : -$0.78
PS Ratio SOUN : 14.72 RCAT : 23.24
PB Ratio SOUN : 5.07 RCAT : 5.66
Total Revenue (TTM) SOUN : $183.99M RCAT : $52.98M
Gross Profit (TTM) SOUN : $69.84M RCAT : $2.86M
EBITDA (TTM) SOUN : -$124.47M RCAT : -$79.24M

Return for Risk

SOUN vs. RCAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SOUN

SOUN Risk / Return Rank: 31
SOUN Sharpe Ratio Rank: 28
SOUN Sortino Ratio Rank: 32
SOUN Omega Ratio Rank: 32
SOUN Calmar Ratio Rank: 30
SOUN Martin Ratio Rank: 32

RCAT

RCAT Risk / Return Rank: 56
RCAT Sharpe Ratio Rank: 51
RCAT Sortino Ratio Rank: 63
RCAT Omega Ratio Rank: 58
RCAT Calmar Ratio Rank: 54
RCAT Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SOUN vs. RCAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SoundHound AI, Inc. (SOUN) and Red Cat Holdings, Inc. (RCAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SOUN	RCAT	Difference
Sharpe ratio: Return per unit of total volatility	-0.34	0.23	-0.57
Sortino ratio: Return per unit of downside risk	-0.01	1.28	-1.28
Omega ratio: Gain probability vs. loss probability	1.00	1.14	-0.14
Calmar ratio: Return relative to maximum drawdown	-0.38	0.46	-0.84
Martin ratio: Return relative to average drawdown	-0.60	0.92	-1.52

SOUN vs. RCAT - Sharpe Ratio Comparison

The current SOUN Sharpe Ratio is -0.34, which is lower than the RCAT Sharpe Ratio of 0.23. The chart below compares the historical Sharpe Ratios of SOUN and RCAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SOUN vs. RCAT - Drawdown Comparison

The maximum SOUN drawdown since its inception was -93.55%, smaller than the maximum RCAT drawdown of -99.21%. Use the drawdown chart below to compare losses from any high point for SOUN and RCAT.

Drawdown Indicators

	SOUN	RCAT	Difference
Max Drawdown Largest peak-to-trough decline	-93.55%	-99.21%	+5.66%
Max Drawdown (1Y) Largest decline over 1 year	-72.43%	-60.08%	-12.35%
Max Drawdown (3Y) Largest decline over 3 years	-75.65%	-67.16%	-8.49%
Max Drawdown (5Y) Largest decline over 5 years	—	-92.25%	—
Current Drawdown Current decline from peak	-71.52%	-35.60%	-35.92%
Average Drawdown Average peak-to-trough decline	-66.93%	-65.98%	-0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	45.29%	30.17%	+15.12%

Volatility

SOUN vs. RCAT - Volatility Comparison

The current volatility for SoundHound AI, Inc. (SOUN) is 17.69%, while Red Cat Holdings, Inc. (RCAT) has a volatility of 40.71%. This indicates that SOUN experiences smaller price fluctuations and is considered to be less risky than RCAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SOUN	RCAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.69%	40.71%	-23.02%
Volatility (6M) Calculated over the trailing 6-month period	52.15%	85.22%	-33.07%
Volatility (1Y) Calculated over the trailing 1-year period	80.70%	120.36%	-39.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	136.27%	115.04%	+21.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	136.27%	29,209.75%	-29,073.48%

Dividends

SOUN vs. RCAT - Dividend Comparison

Neither SOUN nor RCAT has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both SOUN and RCAT in my portfolio?

SOUN and RCAT have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SOUN or RCAT?

RCAT has higher volatility (40.71%) compared to SOUN (17.69%). In terms of maximum drawdown, SOUN dropped -93.55% vs RCAT's -99.21%.

Which has better risk-adjusted returns?

RCAT currently has the higher Sharpe Ratio (0.23 vs -0.34), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.