Alarm.com Holdings Inc (ALRM)vsSonos Inc (SONO)
ALRM
Alarm.com Holdings Inc
$57.53
+2.20%
TECHNOLOGY · Cap: $2.71B
SONO
Sonos Inc
$15.64
+1.23%
TECHNOLOGY · Cap: $1.73B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 44% more annual revenue ($1.49B vs $1.04B). ALRM leads profitability with a 12.4% profit margin vs 3.8%. ALRM trades at a lower P/E of 22.7x. ALRM earns a higher WallStSmart Score of 54/100 (C-).
ALRM
Buy54
out of 100
Grade: C-
SONO
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.5%
Fair Value
$67.78
Current Price
$57.53
$10.25 discount
Margin of Safety
-31.5%
Fair Value
$12.55
Current Price
$15.64
$3.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Grey zone — moderate risk
Earnings declined 10.3%
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ALRM
Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : ALRM
The primary concerns for ALRM are Altman Z-Score, EPS Growth.
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
SONO carries more volatility with a beta of 1.96 — expect wider price swings.
ALRM is growing revenue faster at 11.0% — sustainability is the question.
ALRM generates stronger free cash flow (50M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ALRM scores higher overall (54/100 vs 51/100) and 11.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alarm.com Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Alarm.com Holdings, Inc. offers cloud-based solutions for smart residential and commercial properties in the United States and internationally. The company is headquartered in Tysons, Virginia.
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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