WallStSmart

Frequency Electronics Inc (FEIM)vsSonos Inc (SONO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 1945% more annual revenue ($1.49B vs $72.87M). SONO leads profitability with a 3.8% profit margin vs 3.7%. SONO trades at a lower P/E of 38.5x. FEIM earns a higher WallStSmart Score of 54/100 (C-).

FEIM

Buy

54

out of 100

Grade: C-

Growth: 9.3Profit: 5.5Value: 4.3Quality: 7.5
Piotroski: 2/9Altman Z: 1.98

SONO

Hold

47

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

Intrinsic value data unavailable for FEIM.

SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$17.75

$5.27 premium

UndervaluedFair: $12.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FEIM4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
69.8%10/10

Revenue surging 69.8% year-over-year

EPS GrowthGrowth
529.0%10/10

Earnings expanding 529.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

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

FEIM4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Market CapQuality
$768.73M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.2%3/10

ROE of 2.2% — below average capital efficiency

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.5x4/10

Premium valuation, high expectations priced in

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

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : FEIM

The strongest argument for FEIM centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 69.8% demonstrates continued momentum. PEG of 1.25 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 : FEIM

The primary concerns for FEIM are Altman Z-Score, Market Cap, Return on Equity. A P/E of 272.8x leaves little room for execution misses. Thin 3.7% margins leave little buffer for downturns.

Bear Case : SONO

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

Key Dynamics to Monitor

FEIM profiles as a hypergrowth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.88 — expect wider price swings.

FEIM is growing revenue faster at 69.8% — sustainability is the question.

SONO generates stronger free cash flow (40M), providing more financial flexibility.

Bottom Line

FEIM scores higher overall (54/100 vs 47/100) and 69.8% 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.

Frequency Electronics Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Frequency Electronics, Inc. designs, develops, manufactures and sells precision frequency and time control products and components for microwave integrated circuit applications. The company is headquartered in Mitchel Field, New York.

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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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