EPAM Systems Inc (EPAM)vsSonos Inc (SONO)
EPAM
EPAM Systems Inc
$99.23
-4.81%
TECHNOLOGY · Cap: $5.50B
SONO
Sonos Inc
$15.06
+1.14%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
EPAM Systems Inc generates 274% more annual revenue ($5.46B vs $1.46B). EPAM leads profitability with a 6.9% profit margin vs 1.6%. EPAM trades at a lower P/E of 15.0x. EPAM earns a higher WallStSmart Score of 66/100 (B-).
EPAM
Strong Buy66
out of 100
Grade: B-
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.1%
Fair Value
$414.58
Current Price
$99.23
$315.35 discount
Margin of Safety
+43.7%
Fair Value
$29.31
Current Price
$15.06
$14.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 87.5% YoY
Areas to Watch
6.9% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : EPAM
The strongest argument for EPAM centers on Price/Book, Debt/Equity, Altman Z-Score. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : EPAM
The primary concerns for EPAM are Profit Margin, Piotroski F-Score, Free Cash Flow.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
EPAM is growing revenue faster at 12.8% — sustainability is the question.
EPAM generates stronger free cash flow (-54M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EPAM scores higher overall (66/100 vs 45/100) and 12.8% revenue growth. SONO offers better value entry with a 43.7% margin of safety. Both earn "Strong 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.
EPAM Systems Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast Asia, and Australia. The company is headquartered in Newtown, Pennsylvania.
Visit Website →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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