NetApp Inc (NTAP)vsSonos Inc (SONO)
NTAP
NetApp Inc
$118.00
+4.42%
TECHNOLOGY · Cap: $22.38B
SONO
Sonos Inc
$15.06
+1.14%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
NetApp Inc generates 360% more annual revenue ($6.71B vs $1.46B). NTAP leads profitability with a 18.1% profit margin vs 1.6%. NTAP trades at a lower P/E of 19.0x. NTAP earns a higher WallStSmart Score of 66/100 (B-).
NTAP
Strong Buy66
out of 100
Grade: B-
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.9%
Fair Value
$79.69
Current Price
$118.00
$38.31 premium
Margin of Safety
+43.7%
Fair Value
$29.31
Current Price
$15.06
$14.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 113 in profit
Strong operational efficiency at 25.2%
Earnings expanding 87.5% YoY
Areas to Watch
4.4% revenue growth
Trading at 20.2x book value
Distress zone — elevated risk
Elevated debt levels
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : NTAP
The strongest argument for NTAP centers on Return on Equity, Operating Margin. Profitability is solid with margins at 18.1% and operating margin at 25.2%. PEG of 1.30 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : NTAP
The primary concerns for NTAP are Revenue Growth, Price/Book, Altman Z-Score. Debt-to-equity of 2.78 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
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.
NTAP generates stronger free cash flow (271M), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NTAP scores higher overall (66/100 vs 45/100), backed by strong 18.1% margins. 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.
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.
Visit Website →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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