WallStSmart

Ooma Inc (OOMA)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 386% more annual revenue ($1.49B vs $306.59M). SONO leads profitability with a 3.8% profit margin vs 3.6%. SONO trades at a lower P/E of 32.3x. OOMA earns a higher WallStSmart Score of 53/100 (C-).

OOMA

Buy

53

out of 100

Grade: C-

Growth: 8.0Profit: 5.0Value: 5.3Quality: 3.5
Piotroski: 3/9Altman Z: 0.83

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

OOMAUndervalued (+31.8%)

Margin of Safety

+31.8%

Fair Value

$16.65

Current Price

$22.77

$6.12 discount

UndervaluedFair: $16.65Overvalued
SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OOMA2 strengths · Avg: 9.0/10
EPS GrowthGrowth
150.0%10/10

Earnings expanding 150.0% YoY

Revenue GrowthGrowth
25.4%8/10

Revenue surging 25.4% 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

OOMA4 concerns · Avg: 3.3/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Market CapQuality
$619.01M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Operating MarginProfitability
4.8%3/10

Operating margin of 4.8%

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 : OOMA

The strongest argument for OOMA centers on EPS Growth, Revenue Growth. Revenue growth of 25.4% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : OOMA

The primary concerns for OOMA are PEG Ratio, Market Cap, Profit Margin. A P/E of 56.3x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

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

OOMA 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.

OOMA is growing revenue faster at 25.4% — sustainability is the question.

SONO generates stronger free cash flow (40M), providing more financial flexibility.

Bottom Line

OOMA scores higher overall (53/100 vs 48/100) and 25.4% revenue growth. 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.

Ooma Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company is headquartered in Sunnyvale, California.

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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