WallStSmart

Sonos Inc (SONO)vsStoneCo Ltd (STNE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

StoneCo Ltd generates 827% more annual revenue ($13.54B vs $1.46B). STNE leads profitability with a 26.0% profit margin vs 1.6%. STNE trades at a lower P/E of 4.2x. STNE earns a higher WallStSmart Score of 77/100 (B+).

SONO

Hold

45

out of 100

Grade: D+

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

STNE

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 8.3Quality: 4.0
Piotroski: 4/9Altman Z: 0.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$12.25

Current Price

$14.32

$2.07 premium

UndervaluedFair: $12.25Overvalued
STNEUndervalued (+79.4%)

Margin of Safety

+79.4%

Fair Value

$85.94

Current Price

$10.74

$75.20 discount

UndervaluedFair: $85.94Overvalued

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

STNE6 strengths · Avg: 9.7/10
P/E RatioValuation
4.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

EPS GrowthGrowth
273.8%10/10

Earnings expanding 273.8% YoY

Return on EquityProfitability
28.4%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
26.0%9/10

Keeps 26 of every $100 in revenue as profit

Areas to Watch

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.83B3/10

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

STNE3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Debt/EquityHealth
1.293/10

Elevated debt levels

Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

Bull Case : STNE

The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Bear Case : STNE

The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

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

SONO is growing revenue faster at 8.4% — sustainability is the question.

STNE generates stronger free cash flow (3.1B), providing more financial flexibility.

Monitor CONSUMER ELECTRONICS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

STNE scores higher overall (77/100 vs 45/100), backed by strong 26.0% margins. 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.

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