WallStSmart

Progress Software Corporation (PRGS)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 48% more annual revenue ($1.46B vs $987.62M). PRGS leads profitability with a 8.6% profit margin vs 1.6%. PRGS trades at a lower P/E of 16.1x. PRGS earns a higher WallStSmart Score of 66/100 (B-).

PRGS

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 7.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.62

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

PRGSUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$53.14

Current Price

$31.36

$21.78 discount

UndervaluedFair: $53.14Overvalued
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

PRGS3 strengths · Avg: 8.7/10
EPS GrowthGrowth
120.8%10/10

Earnings expanding 120.8% YoY

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

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

PRGS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Market CapQuality
$1.32B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.743/10

Elevated debt levels

Altman Z-ScoreHealth
0.622/10

Distress zone — elevated risk

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 : PRGS

The strongest argument for PRGS centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.05 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 : PRGS

The primary concerns for PRGS are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.74 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.

PRGS generates stronger free cash flow (96M), providing more financial flexibility.

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

Bottom Line

PRGS scores higher overall (66/100 vs 45/100). 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.

Progress Software Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Progress Software Corporation develops business applications. The company is headquartered in Bedford, Massachusetts.

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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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