WallStSmart

Sonos Inc (SONO)vsSTMicroelectronics NV ADR (STM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

STMicroelectronics NV ADR generates 748% more annual revenue ($12.38B vs $1.46B). SONO leads profitability with a 1.6% profit margin vs 1.2%. SONO trades at a lower P/E of 92.8x. SONO earns a higher WallStSmart Score of 45/100 (D+).

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

STM

Hold

40

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 5.0Quality: 7.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Intrinsic value data unavailable for STM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

STM4 strengths · Avg: 8.5/10
Market CapQuality
$70.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

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

STM4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

P/E RatioValuation
496.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

Bull Case : STM

The strongest argument for STM centers on Market Cap, Debt/Equity, PEG Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.71 suggests the stock is reasonably priced for its growth.

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.

Bear Case : STM

The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 496.9x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

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

STM generates stronger free cash flow (155M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (45/100 vs 40/100). 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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