Rapid7 Inc (RPD)vsSonos Inc (SONO)
RPD
Rapid7 Inc
$14.40
-2.57%
TECHNOLOGY · Cap: $1.01B
SONO
Sonos Inc
$18.11
-4.98%
TECHNOLOGY · Cap: $2.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 82% more annual revenue ($1.55B vs $850.37M). SONO leads profitability with a 5.8% profit margin vs 1.6%. SONO trades at a lower P/E of 42.4x. SONO earns a higher WallStSmart Score of 59/100 (C).
RPD
Hold42
out of 100
Grade: D
SONO
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.7%
Fair Value
$60.04
Current Price
$14.40
$45.64 discount
Margin of Safety
-27.4%
Fair Value
$12.95
Current Price
$18.11
$5.16 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
19.6% revenue growth
Areas to Watch
Smaller company, higher risk/reward
1.6% margin — thin
Operating margin of 3.1%
Weak financial health signals
ROE of 6.2% — below average capital efficiency
5.8% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : RPD
The strongest argument for RPD centers on PEG Ratio. PEG of 0.77 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 19.6% demonstrates continued momentum.
Bear Case : RPD
The primary concerns for RPD are Market Cap, Profit Margin, Operating Margin. A P/E of 70.4x leaves little room for execution misses. Debt-to-equity of 4.34 is elevated, increasing financial risk.
Bear Case : SONO
The primary concerns for SONO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 42.4x leaves little room for execution misses.
Key Dynamics to Monitor
RPD profiles as a value stock while SONO is a growth 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 19.6% — sustainability is the question.
SONO generates stronger free cash flow (40M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (59/100 vs 42/100) and 19.6% revenue growth. RPD offers better value entry with a 87.7% margin of safety. 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.
Rapid7 Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.
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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