WallStSmart

Sonos Inc (SONO)vsSTMicroelectronics NV ADR (STM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

STMicroelectronics NV ADR generates 761% more annual revenue ($12.38B vs $1.44B). STM leads profitability with a 1.2% profit margin vs -1.2%. STM earns a higher WallStSmart Score of 45/100 (D+).

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0

STM

Hold

45

out of 100

Grade: D+

Growth: 4.0Profit: 4.0Value: 4.0Quality: 6.0
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.49

Current Price

$14.67

$13.82 discount

UndervaluedFair: $28.49Overvalued
STMSignificantly Overvalued (-32.3%)

Margin of Safety

-32.3%

Fair Value

$26.42

Current Price

$55.14

$28.72 premium

UndervaluedFair: $26.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SONO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

STM3 strengths · Avg: 8.0/10
PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

STM4 concerns · Avg: 3.0/10
Return on EquityProfitability
0.9%3/10

ROE of 0.9% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bull Case : STM

The strongest argument for STM centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.

Bear Case : STM

The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 329.2x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

SONO profiles as a turnaround stock while STM is a growth play — different risk/reward profiles.

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

STM is growing revenue faster at 23.0% — sustainability is the question.

SONO generates stronger free cash flow (157M), providing more financial flexibility.

Bottom Line

STM scores higher overall (45/100 vs 42/100) and 23.0% revenue growth. SONO offers better value entry with a 42.1% margin of safety. Both earn "Hold" 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.

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.

STMicroelectronics NV ADR

TECHNOLOGY · SEMICONDUCTORS · USA

STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.

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