NVE Corporation (NVEC)vsSonos Inc (SONO)
NVEC
NVE Corporation
$82.37
+1.40%
TECHNOLOGY · Cap: $351.87M
SONO
Sonos Inc
$17.75
-0.67%
TECHNOLOGY · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 4747% more annual revenue ($1.49B vs $30.75M). NVEC leads profitability with a 58.2% profit margin vs 3.8%. NVEC trades at a lower P/E of 19.7x. NVEC earns a higher WallStSmart Score of 56/100 (C).
NVEC
Buy56
out of 100
Grade: C
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.9%
Fair Value
$59.90
Current Price
$82.37
$22.47 premium
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$17.75
$5.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 31 in profit
Keeps 58 of every $100 in revenue as profit
Strong operational efficiency at 54.9%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Revenue declined 8.1%
Earnings declined 4.4%
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : NVEC
The strongest argument for NVEC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 58.2% and operating margin at 54.9%. PEG of 0.84 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 : NVEC
The primary concerns for NVEC are Market Cap, Piotroski F-Score, Revenue Growth.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
NVEC profiles as a declining stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
SONO generates stronger free cash flow (40M), providing more financial flexibility.
Bottom Line
NVEC scores higher overall (56/100 vs 47/100), backed by strong 58.2% margins. 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.
NVE Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on the spin of the electron to acquire, store, and transmit information in the United States and internationally. The company is headquartered in Eden Prairie, Minnesota.
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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