WallStSmart

Elastic NV (ESTC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Elastic NV generates 15% more annual revenue ($1.68B vs $1.46B). SONO leads profitability with a 1.6% profit margin vs -5.0%. SONO earns a higher WallStSmart Score of 45/100 (D+).

ESTC

Hold

40

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.73

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 5.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESTCUndervalued (+67.8%)

Margin of Safety

+67.8%

Fair Value

$192.31

Current Price

$52.25

$140.06 discount

UndervaluedFair: $192.31Overvalued
SONOUndervalued (+43.7%)

Margin of Safety

+43.7%

Fair Value

$29.31

Current Price

$15.06

$14.25 discount

UndervaluedFair: $29.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESTC1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

SONO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Areas to Watch

ESTC4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
0.2%3/10

Operating margin of 0.2%

Return on EquityProfitability
-10.2%2/10

ROE of -10.2% — below average capital efficiency

Altman Z-ScoreHealth
0.732/10

Distress zone — elevated risk

SONO4 concerns · Avg: 2.8/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

P/E RatioValuation
87.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ESTC

The strongest argument for ESTC centers on Revenue Growth. Revenue growth of 17.7% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : ESTC

The primary concerns for ESTC are EPS Growth, Operating Margin, Return on Equity.

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

ESTC profiles as a growth 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.

ESTC is growing revenue faster at 17.7% — sustainability is the question.

ESTC generates stronger free cash flow (42M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (45/100 vs 40/100). ESTC offers better value entry with a 67.8% margin of safety. Both earn "Hold" 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.

Elastic NV

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Elastic NV, a search company, offers technology that enables users to search through structured and unstructured data for a variety of consumer and business applications. The company is headquartered in Mountain View, California.

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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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