WallStSmart

Elastic NV (ESTC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Elastic NV generates 17% more annual revenue ($1.74B vs $1.49B). ESTC leads profitability with a 21.1% profit margin vs 3.8%. ESTC trades at a lower P/E of 18.7x. ESTC earns a higher WallStSmart Score of 53/100 (C-).

ESTC

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 3.5Value: 6.0Quality: 5.0
Piotroski: 3/9Altman Z: 0.93

SONO

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESTCUndervalued (+63.4%)

Margin of Safety

+63.4%

Fair Value

$169.15

Current Price

$75.11

$94.04 discount

UndervaluedFair: $169.15Overvalued
SONOSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$12.55

Current Price

$15.64

$3.09 premium

UndervaluedFair: $12.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESTC2 strengths · Avg: 8.5/10
Profit MarginProfitability
21.1%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

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

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

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

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.172/10

Expensive relative to growth rate

Return on EquityProfitability
-10.7%2/10

ROE of -10.7% — below average capital efficiency

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.73B3/10

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 : ESTC

The strongest argument for ESTC centers on Profit Margin, Revenue Growth. Profitability is solid with margins at 21.1% and operating margin at -3.5%. Revenue growth of 16.0% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : ESTC

The primary concerns for ESTC are EPS Growth, Piotroski F-Score, PEG Ratio.

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

ESTC profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.96 — expect wider price swings.

ESTC is growing revenue faster at 16.0% — sustainability is the question.

ESTC generates stronger free cash flow (150M), providing more financial flexibility.

Bottom Line

ESTC scores higher overall (53/100 vs 51/100), backed by strong 21.1% margins and 16.0% 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.

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.

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.

Want to dig deeper into these stocks?