WallStSmart

Garmin Ltd (GRMN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Garmin Ltd generates 411% more annual revenue ($7.46B vs $1.46B). GRMN leads profitability with a 23.3% profit margin vs 1.6%. GRMN trades at a lower P/E of 27.0x. GRMN earns a higher WallStSmart Score of 61/100 (C+).

GRMN

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 3.3Quality: 9.0
Piotroski: 5/9Altman Z: 5.27

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

GRMNSignificantly Overvalued (-27.5%)

Margin of Safety

-27.5%

Fair Value

$162.03

Current Price

$242.38

$80.35 premium

UndervaluedFair: $162.03Overvalued
SONOUndervalued (+43.7%)

Margin of Safety

+43.7%

Fair Value

$29.31

Current Price

$15.22

$14.09 discount

UndervaluedFair: $29.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GRMN5 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

EPS GrowthGrowth
21.5%8/10

Earnings expanding 21.5% YoY

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

Earnings expanding 87.5% YoY

Areas to Watch

GRMN2 concerns · Avg: 3.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

PEG RatioValuation
3.402/10

Expensive relative to growth rate

SONO4 concerns · Avg: 2.8/10
Market CapQuality
$1.81B3/10

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
89.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GRMN

The strongest argument for GRMN centers on Debt/Equity, Altman Z-Score, Profit Margin. Profitability is solid with margins at 23.3% and operating margin at 24.6%. Revenue growth of 14.2% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : GRMN

The primary concerns for GRMN are P/E Ratio, PEG Ratio.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 89.5x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

GRMN profiles as a mature 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.

GRMN is growing revenue faster at 14.2% — sustainability is the question.

GRMN generates stronger free cash flow (469M), providing more financial flexibility.

Bottom Line

GRMN scores higher overall (61/100 vs 45/100), backed by strong 23.3% margins and 14.2% revenue growth. SONO offers better value entry with a 43.7% margin of safety. 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.

Garmin Ltd

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Garmin Ltd. is an American multinational technology company with headquarters in Olathe, Kansas.

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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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