Semtech Corporation (SMTC)vsSonos Inc (SONO)
SMTC
Semtech Corporation
$127.42
+4.12%
TECHNOLOGY · Cap: $13.72B
SONO
Sonos Inc
$15.94
+1.34%
TECHNOLOGY · Cap: $2.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 27% more annual revenue ($1.49B vs $1.17B). SMTC leads profitability with a 13.1% profit margin vs 3.8%. SONO trades at a lower P/E of 38.8x. SMTC earns a higher WallStSmart Score of 60/100 (C+).
SMTC
Buy60
out of 100
Grade: C+
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SMTC.
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$15.94
$3.46 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 32.7% year-over-year
Every $100 of equity generates 21 in profit
Earnings expanding 22.7% YoY
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 15.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : SMTC
The strongest argument for SMTC centers on Revenue Growth, Return on Equity, EPS Growth. Revenue growth of 32.7% demonstrates continued momentum.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : SMTC
The primary concerns for SMTC are Price/Book, PEG Ratio, P/E Ratio. A P/E of 97.3x leaves little room for execution misses.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SMTC profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SMTC carries more volatility with a beta of 2.42 — expect wider price swings.
SMTC is growing revenue faster at 32.7% — sustainability is the question.
SMTC generates stronger free cash flow (61M), providing more financial flexibility.
Bottom Line
SMTC scores higher overall (60/100 vs 47/100) and 32.7% 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.
Semtech Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.
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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