WallStSmart

Sunrun Inc (RUN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sunrun Inc generates 133% more annual revenue ($3.48B vs $1.49B). RUN leads profitability with a 11.6% profit margin vs 3.8%. RUN trades at a lower P/E of 6.3x. RUN earns a higher WallStSmart Score of 57/100 (C).

RUN

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 7.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.27

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

RUNUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$41.57

Current Price

$8.56

$33.01 discount

UndervaluedFair: $41.57Overvalued
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

RUN3 strengths · Avg: 10.0/10
P/E RatioValuation
6.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
52.8%10/10

Revenue surging 52.8% 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

RUN4 concerns · Avg: 2.3/10
Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

PEG RatioValuation
3.072/10

Expensive relative to growth rate

EPS GrowthGrowth
-60.7%2/10

Earnings declined 60.7%

Free Cash FlowQuality
$-180.25M2/10

Negative free cash flow — burning cash

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 : RUN

The strongest argument for RUN centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 52.8% 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 Operating Margin, PEG Ratio, EPS Growth. Debt-to-equity of 4.36 is elevated, increasing financial risk.

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

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

RUN carries more volatility with a beta of 2.36 — expect wider price swings.

RUN is growing revenue faster at 52.8% — sustainability is the question.

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

Bottom Line

RUN scores higher overall (57/100 vs 48/100) and 52.8% 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.

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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