Sonos Inc (SONO)vsToast Inc (TOST)
SONO
Sonos Inc
$15.12
+3.35%
TECHNOLOGY · Cap: $1.72B
TOST
Toast Inc
$32.12
+0.56%
TECHNOLOGY · Cap: $19.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Toast Inc generates 357% more annual revenue ($6.80B vs $1.49B). TOST leads profitability with a 7.1% profit margin vs 3.8%. SONO trades at a lower P/E of 32.3x. TOST earns a higher WallStSmart Score of 68/100 (B-).
SONO
Hold48
out of 100
Grade: D+
TOST
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.9%
Fair Value
$12.51
Current Price
$15.12
$2.61 premium
Margin of Safety
+24.8%
Fair Value
$37.27
Current Price
$32.12
$5.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Earnings expanding 100.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Revenue surging 23.1% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Trading at 9.4x book value
7.1% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bull Case : TOST
The strongest argument for TOST centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 23.1% demonstrates continued momentum. PEG of 0.25 suggests the stock is reasonably priced for its growth.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Bear Case : TOST
The primary concerns for TOST are Price/Book, Profit Margin, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.
Key Dynamics to Monitor
SONO profiles as a value stock while TOST is a growth play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
TOST is growing revenue faster at 23.1% — sustainability is the question.
TOST generates stronger free cash flow (130M), providing more financial flexibility.
Bottom Line
TOST scores higher overall (68/100 vs 48/100) and 23.1% revenue growth. 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.
Toast Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.
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