WallStSmart

NETGEAR Inc (NTGR)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 110% more annual revenue ($1.46B vs $696.38M). SONO leads profitability with a 1.6% profit margin vs -3.6%. SONO earns a higher WallStSmart Score of 45/100 (D+).

NTGR

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 2.0Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.31

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

NTGROvervalued (-5.4%)

Margin of Safety

-5.4%

Fair Value

$19.47

Current Price

$25.74

$6.27 premium

UndervaluedFair: $19.47Overvalued
SONOSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$12.25

Current Price

$15.08

$2.83 premium

UndervaluedFair: $12.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTGR3 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.748/10

Growing faster than its price suggests

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

NTGR4 concerns · Avg: 2.3/10
Market CapQuality
$648.18M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.5%2/10

ROE of -8.5% — below average capital efficiency

Revenue GrowthGrowth
-2.0%2/10

Revenue declined 2.0%

EPS GrowthGrowth
-68.7%2/10

Earnings declined 68.7%

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.83B3/10

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 : NTGR

The strongest argument for NTGR centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.74 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 : NTGR

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

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

NTGR profiles as a turnaround 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.

NTGR generates stronger free cash flow (-2M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (45/100 vs 44/100). 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.

NETGEAR Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

NETGEAR, Inc. designs, develops, and markets Internet-connected products and networks for consumers, businesses, and service providers. The company is headquartered in San Jose, California.

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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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