WallStSmart

Sunrun Inc (RUN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sunrun Inc generates 117% more annual revenue ($3.17B vs $1.46B). RUN leads profitability with a 17.9% profit margin vs 1.6%. RUN trades at a lower P/E of 6.0x. RUN earns a higher WallStSmart Score of 68/100 (B-).

RUN

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 5.0Value: 7.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.27

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

RUNUndervalued (+51.7%)

Margin of Safety

+51.7%

Fair Value

$39.67

Current Price

$13.36

$26.32 discount

UndervaluedFair: $39.67Overvalued
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

RUN4 strengths · Avg: 10.0/10
P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
43.2%10/10

Revenue surging 43.2% year-over-year

EPS GrowthGrowth
214.4%10/10

Earnings expanding 214.4% YoY

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

RUN4 concerns · Avg: 1.8/10
PEG RatioValuation
3.072/10

Expensive relative to growth rate

Free Cash FlowQuality
$-414.21M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.272/10

Distress zone — elevated risk

Operating MarginProfitability
-6.0%1/10

Operating margin of -6.0%

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 : RUN

The strongest argument for RUN centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 17.9% and operating margin at -6.0%. Revenue growth of 43.2% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : RUN

The primary concerns for RUN are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.45 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

RUN profiles as a growth stock while SONO is a value play — different risk/reward profiles.

RUN carries more volatility with a beta of 2.30 — expect wider price swings.

RUN is growing revenue faster at 43.2% — sustainability is the question.

SONO generates stronger free cash flow (-70M), providing more financial flexibility.

Bottom Line

RUN scores higher overall (68/100 vs 45/100), backed by strong 17.9% margins and 43.2% revenue growth. 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.

Sunrun Inc

TECHNOLOGY · SOLAR · USA

Sunrun Inc. is dedicated to the design, development, installation, sale, ownership and maintenance of residential solar energy systems in the United States. 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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