WallStSmart

NetApp Inc (NTAP)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NetApp Inc generates 396% more annual revenue ($7.39B vs $1.49B). NTAP leads profitability with a 19.2% profit margin vs 3.8%. NTAP trades at a lower P/E of 28.0x. NTAP earns a higher WallStSmart Score of 70/100 (B-).

NTAP

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.0Quality: 5.0
Piotroski: 6/9Altman Z: 1.48

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NTAP.

SONOSignificantly Overvalued (-32.1%)

Margin of Safety

-32.1%

Fair Value

$12.49

Current Price

$16.85

$4.36 premium

UndervaluedFair: $12.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTAP4 strengths · Avg: 9.0/10
Return on EquityProfitability
94.8%10/10

Every $100 of equity generates 95 in profit

EPS GrowthGrowth
63.5%10/10

Earnings expanding 63.5% YoY

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Revenue GrowthGrowth
29.9%8/10

Revenue surging 29.9% year-over-year

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

NTAP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
28.0x4/10

Moderate valuation

Debt/EquityHealth
1.693/10

Elevated debt levels

Price/BookValuation
25.3x2/10

Trading at 25.3x book value

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : NTAP

The strongest argument for NTAP centers on Return on Equity, EPS Growth, Operating Margin. Profitability is solid with margins at 19.2% and operating margin at 26.7%. Revenue growth of 29.9% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : NTAP

The primary concerns for NTAP are PEG Ratio, P/E Ratio, Debt/Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

NTAP 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.

NTAP is growing revenue faster at 29.9% — sustainability is the question.

NTAP generates stronger free cash flow (401M), providing more financial flexibility.

Bottom Line

NTAP scores higher overall (70/100 vs 48/100), backed by strong 19.2% margins and 29.9% revenue growth. 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.

NetApp Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

NetApp, Inc. is an American hybrid cloud data services and data management company headquartered in Sunnyvale, California. Founded in 1992 with an IPO in 1995, NetApp offers cloud data services for management of applications and data both online and physically.

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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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