WallStSmart

Microchip Technology Inc (MCHP)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microchip Technology Inc generates 204% more annual revenue ($4.37B vs $1.44B). SONO leads profitability with a -1.2% profit margin vs -1.6%. SONO earns a higher WallStSmart Score of 42/100 (D).

MCHP

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 3.5Value: 5.0Quality: 6.0
Piotroski: 3/9Altman Z: 1.53

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCHPOvervalued (-6.4%)

Margin of Safety

-6.4%

Fair Value

$75.87

Current Price

$89.44

$13.57 premium

UndervaluedFair: $75.87Overvalued
SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.49

Current Price

$14.64

$13.85 discount

UndervaluedFair: $28.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCHP1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

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

Earnings expanding 87.5% YoY

Areas to Watch

MCHP4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-1.1%2/10

ROE of -1.1% — below average capital efficiency

EPS GrowthGrowth
-81.6%2/10

Earnings declined 81.6%

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.78B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : MCHP

The strongest argument for MCHP centers on Revenue Growth. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.11 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : MCHP

The primary concerns for MCHP are Altman Z-Score, Piotroski F-Score, Return on Equity.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

MCHP profiles as a growth stock while SONO is a turnaround play — different risk/reward profiles.

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

MCHP is growing revenue faster at 15.6% — sustainability is the question.

MCHP generates stronger free cash flow (319M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (42/100 vs 37/100). Both earn "Hold" 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.

Microchip Technology Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.

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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