WallStSmart

Fair Isaac Corporation (FICO)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fair Isaac Corporation generates 61% more annual revenue ($2.39B vs $1.49B). FICO leads profitability with a 34.1% profit margin vs 3.8%. FICO trades at a lower P/E of 27.1x. FICO earns a higher WallStSmart Score of 77/100 (B+).

FICO

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 6.3Quality: 7.5
Piotroski: 5/9Altman Z: 6.04

SONO

Hold

48

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 FICO.

SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FICO6 strengths · Avg: 9.7/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
34.1%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
53.8%10/10

Strong operational efficiency at 53.8%

Debt/EquityHealth
-1.3710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.0410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.658/10

Growing faster than its price suggests

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

FICO1 concerns · Avg: 4.0/10
P/E RatioValuation
27.1x4/10

Moderate valuation

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

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 : FICO

The strongest argument for FICO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 34.1% and operating margin at 53.8%. Revenue growth of 25.7% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : FICO

The primary concerns for FICO are P/E 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

FICO 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.

FICO is growing revenue faster at 25.7% — sustainability is the question.

FICO generates stronger free cash flow (380M), providing more financial flexibility.

Bottom Line

FICO scores higher overall (77/100 vs 48/100), backed by strong 34.1% margins and 25.7% revenue growth. 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.

Fair Isaac Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Fair Isaac Corporation develops data management, software and analytics products and services that enable companies to automate, improve and connect decisions in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. The company is headquartered in San Jose, 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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