WallStSmart

Sonos Inc (SONO)vsTexas Instruments Incorporated (TXN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Texas Instruments Incorporated generates 1205% more annual revenue ($19.45B vs $1.49B). TXN leads profitability with a 31.1% profit margin vs 3.8%. SONO trades at a lower P/E of 32.3x. TXN earns a higher WallStSmart Score of 78/100 (B+).

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

TXN

Strong Buy

78

out of 100

Grade: B+

Growth: 6.7Profit: 9.5Value: 5.7Quality: 8.0
Piotroski: 5/9Altman Z: 4.12
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-32.1%)

Margin of Safety

-32.1%

Fair Value

$12.49

Current Price

$15.60

$3.11 premium

UndervaluedFair: $12.49Overvalued

Intrinsic value data unavailable for TXN.

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
0.129/10

Conservative balance sheet, low leverage

TXN6 strengths · Avg: 10.0/10
Market CapQuality
$245.39B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.6%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
31.1%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
42.6%10/10

Strong operational efficiency at 42.6%

EPS GrowthGrowth
51.8%10/10

Earnings expanding 51.8% YoY

Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

Areas to Watch

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

TXN2 concerns · Avg: 4.0/10
P/E RatioValuation
39.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.2x4/10

Trading at 13.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

Bull Case : TXN

The strongest argument for TXN centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.1% and operating margin at 42.6%. Revenue growth of 22.8% demonstrates continued momentum.

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 : TXN

The primary concerns for TXN are P/E Ratio, Price/Book.

Key Dynamics to Monitor

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

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

TXN is growing revenue faster at 22.8% — sustainability is the question.

TXN generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

TXN scores higher overall (78/100 vs 48/100), backed by strong 31.1% margins and 22.8% 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.

Texas Instruments Incorporated

TECHNOLOGY · SEMICONDUCTORS · USA

Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.

Want to dig deeper into these stocks?