WallStSmart

ADEIA CORP (ADEA)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 217% more annual revenue ($1.49B vs $470.87M). ADEA leads profitability with a 26.1% profit margin vs 3.8%. ADEA trades at a lower P/E of 24.1x. ADEA earns a higher WallStSmart Score of 64/100 (C+).

ADEA

Buy

64

out of 100

Grade: C+

Growth: 4.7Profit: 9.5Value: 6.7Quality: 7.5
Piotroski: 7/9Altman Z: 1.90

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADEAUndervalued (+47.6%)

Margin of Safety

+47.6%

Fair Value

$36.32

Current Price

$26.71

$9.61 discount

UndervaluedFair: $36.32Overvalued
SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADEA3 strengths · Avg: 9.3/10
Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
26.1%9/10

Keeps 26 of every $100 in revenue as profit

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

ADEA3 concerns · Avg: 4.0/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ADEA

The strongest argument for ADEA centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 26.1% and operating margin at 32.0%. Revenue growth of 12.1% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : ADEA

The primary concerns for ADEA are PEG Ratio, EPS Growth, Altman Z-Score.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ADEA profiles as a mature stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

ADEA is growing revenue faster at 12.1% — sustainability is the question.

ADEA generates stronger free cash flow (54M), providing more financial flexibility.

Bottom Line

ADEA scores higher overall (64/100 vs 48/100), backed by strong 26.1% margins and 12.1% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ADEIA CORP

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adeia Inc., is a global consumer and entertainment products/solutions licensing company. The company is headquartered in San Jose, California.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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