WallStSmart

Knowles Cor (KN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 138% more annual revenue ($1.46B vs $614.10M). KN leads profitability with a 9.1% profit margin vs 1.6%. KN trades at a lower P/E of 52.7x. KN earns a higher WallStSmart Score of 56/100 (C).

KN

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.5Value: 4.7Quality: 8.5
Piotroski: 7/9Altman Z: 1.94

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

KNSignificantly Overvalued (-86.8%)

Margin of Safety

-86.8%

Fair Value

$14.45

Current Price

$37.26

$22.81 premium

UndervaluedFair: $14.45Overvalued
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

KN3 strengths · Avg: 9.0/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

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

KN4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

P/E RatioValuation
52.7x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-11.50M2/10

Negative free cash flow — burning cash

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 : KN

The strongest argument for KN centers on PEG Ratio, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum. PEG of 0.43 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 : KN

The primary concerns for KN are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 52.7x 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

KN 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.

KN is growing revenue faster at 15.8% — sustainability is the question.

KN generates stronger free cash flow (-12M), providing more financial flexibility.

Bottom Line

KN scores higher overall (56/100 vs 45/100) and 15.8% 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.

Knowles Cor

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Knowles Corporation designs, manufactures and sells microacoustic, audio processing and precision device solutions for the mobile consumer electronics, communications, medical technology, defense, electric and industrial vehicle markets. The company is headquartered in Itasca, Illinois.

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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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