WallStSmart

Pagerduty Inc (PD)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 196% more annual revenue ($1.46B vs $493.71M). PD leads profitability with a 38.6% profit margin vs 1.6%. PD trades at a lower P/E of 4.8x. PD earns a higher WallStSmart Score of 52/100 (C-).

PD

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 8.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.52

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

PDUndervalued (+82.3%)

Margin of Safety

+82.3%

Fair Value

$40.27

Current Price

$9.25

$31.02 discount

UndervaluedFair: $40.27Overvalued
SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PD3 strengths · Avg: 10.0/10
P/E RatioValuation
4.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
86.6%10/10

Every $100 of equity generates 87 in profit

Profit MarginProfitability
38.6%10/10

Keeps 39 of every $100 in revenue as profit

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

PD4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$767.37M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.913/10

Elevated debt levels

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.88B3/10

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 : PD

The strongest argument for PD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 38.6% and operating margin at 7.9%.

Bull Case : SONO

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

Bear Case : PD

The primary concerns for PD are Revenue Growth, EPS Growth, Market Cap. Debt-to-equity of 1.91 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 92.8x 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.

PD generates stronger free cash flow (43M), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PD scores higher overall (52/100 vs 45/100), backed by strong 38.6% 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.

Pagerduty Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

PagerDuty, Inc. operates a digital operations management platform in the United States and internationally. The company is headquartered in San Francisco, 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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