WallStSmart

Gartner Inc (IT)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gartner Inc generates 343% more annual revenue ($6.47B vs $1.46B). IT leads profitability with a 11.4% profit margin vs 1.6%. IT trades at a lower P/E of 15.6x. IT earns a higher WallStSmart Score of 67/100 (B-).

IT

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.0Value: 8.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.41

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

ITUndervalued (+38.9%)

Margin of Safety

+38.9%

Fair Value

$264.32

Current Price

$158.65

$105.67 discount

UndervaluedFair: $264.32Overvalued
SONOUndervalued (+43.7%)

Margin of Safety

+43.7%

Fair Value

$29.31

Current Price

$15.06

$14.25 discount

UndervaluedFair: $29.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IT4 strengths · Avg: 8.5/10
Return on EquityProfitability
94.9%10/10

Every $100 of equity generates 95 in profit

PEG RatioValuation
0.798/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

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

Earnings expanding 87.5% YoY

Areas to Watch

IT4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
35.1x2/10

Trading at 35.1x book value

Revenue GrowthGrowth
-1.5%2/10

Revenue declined 1.5%

Debt/EquityHealth
10.471/10

Elevated debt levels

SONO4 concerns · Avg: 2.8/10
Market CapQuality
$1.77B3/10

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
87.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : IT

The strongest argument for IT centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : IT

The primary concerns for IT are Piotroski F-Score, Price/Book, Revenue Growth. Debt-to-equity of 10.47 is elevated, increasing financial risk.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

IT profiles as a declining 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.

SONO is growing revenue faster at 8.4% — sustainability is the question.

IT generates stronger free cash flow (371M), providing more financial flexibility.

Bottom Line

IT scores higher overall (67/100 vs 45/100). SONO offers better value entry with a 43.7% margin of safety. 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.

Gartner Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Gartner, Inc, officially known as Gartner, is a global research and advisory firm providing information, advice, and tools for leaders in IT, finance, HR, customer service and support, communications, legal and compliance, marketing, sales, and supply chain functions. Its headquarters are in Stamford, Connecticut, United States.

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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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