WallStSmart

Sonos Inc (SONO)vsStoneCo Ltd (STNE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

StoneCo Ltd generates 818% more annual revenue ($13.40B vs $1.46B). STNE leads profitability with a 17.3% profit margin vs 1.6%. STNE trades at a lower P/E of 6.3x. STNE earns a higher WallStSmart Score of 78/100 (B+).

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 5.7Quality: 5.0

STNE

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOUndervalued (+43.7%)

Margin of Safety

+43.7%

Fair Value

$29.31

Current Price

$15.06

$14.25 discount

UndervaluedFair: $29.31Overvalued
STNEUndervalued (+89.5%)

Margin of Safety

+89.5%

Fair Value

$168.87

Current Price

$10.77

$158.10 discount

UndervaluedFair: $168.87Overvalued

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

STNE5 strengths · Avg: 9.4/10
P/E RatioValuation
6.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

EPS GrowthGrowth
46.1%8/10

Earnings expanding 46.1% YoY

Areas to Watch

SONO4 concerns · Avg: 2.8/10
Market CapQuality
$1.77B3/10

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

P/E RatioValuation
87.6x2/10

Premium valuation, high expectations priced in

STNE0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bull Case : STNE

The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 46.3%. Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Bear Case : STNE

No major red flags identified for STNE, but monitor valuation.

Key Dynamics to Monitor

SONO profiles as a value stock while STNE is a mature play — different risk/reward profiles.

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

STNE is growing revenue faster at 11.2% — sustainability is the question.

STNE generates stronger free cash flow (553M), providing more financial flexibility.

Bottom Line

STNE scores higher overall (78/100 vs 45/100), backed by strong 17.3% margins and 11.2% revenue growth. SONO offers better value entry with a 43.7% margin of safety. 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.

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.

StoneCo Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.

Want to dig deeper into these stocks?