WallStSmart

Harmonic Inc (HLIT)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 267% more annual revenue ($1.46B vs $397.34M). SONO leads profitability with a 1.6% profit margin vs -10.6%. SONO trades at a lower P/E of 92.8x. HLIT earns a higher WallStSmart Score of 54/100 (C-).

HLIT

Buy

54

out of 100

Grade: C-

Growth: 7.3Profit: 4.0Value: 3.7Quality: 6.0
Piotroski: 4/9Altman Z: -2.28

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HLIT.

SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HLIT2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
43.4%10/10

Revenue surging 43.4% year-over-year

EPS GrowthGrowth
31.9%8/10

Earnings expanding 31.9% YoY

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

HLIT4 concerns · Avg: 2.8/10
PEG RatioValuation
1.844/10

Expensive relative to growth rate

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

P/E RatioValuation
197.6x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-11.8%2/10

ROE of -11.8% — below average capital efficiency

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.88B3/10

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

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HLIT

The strongest argument for HLIT centers on Revenue Growth, EPS Growth. Revenue growth of 43.4% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : HLIT

The primary concerns for HLIT are PEG Ratio, Market Cap, P/E Ratio. A P/E of 197.6x leaves little room for execution misses.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

HLIT profiles as a hypergrowth 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.

HLIT is growing revenue faster at 43.4% — sustainability is the question.

HLIT generates stronger free cash flow (30M), providing more financial flexibility.

Bottom Line

HLIT scores higher overall (54/100 vs 45/100) and 43.4% 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.

Harmonic Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Harmonic Inc. provides global video delivery software, products, system solutions and services. 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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