WallStSmart

Sonos Inc (SONO)vsVaronis Systems (VRNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 131% more annual revenue ($1.44B vs $623.53M). SONO leads profitability with a -1.2% profit margin vs -20.7%. SONO earns a higher WallStSmart Score of 42/100 (D).

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0

VRNS

Avoid

28

out of 100

Grade: F

Growth: 5.3Profit: 2.0Value: 5.7Quality: 4.3
Piotroski: 3/9Altman Z: 0.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.48

Current Price

$14.84

$13.64 discount

UndervaluedFair: $28.48Overvalued
VRNSUndervalued (+60.5%)

Margin of Safety

+60.5%

Fair Value

$66.55

Current Price

$26.50

$40.05 discount

UndervaluedFair: $66.55Overvalued

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

VRNS0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

VRNS4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
7.382/10

Expensive relative to growth rate

Return on EquityProfitability
-24.5%2/10

ROE of -24.5% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bull Case : VRNS

VRNS has a balanced fundamental profile.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.

Bear Case : VRNS

The primary concerns for VRNS are EPS Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

VRNS is growing revenue faster at 9.4% — sustainability is the question.

SONO generates stronger free cash flow (157M), providing more financial flexibility.

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

Bottom Line

SONO scores higher overall (42/100 vs 28/100). VRNS offers better value entry with a 60.5% margin of safety. Both earn "Hold" and "Avoid" 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.

Varonis Systems

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Varonis Systems (VRNS) is a prominent leader in the cybersecurity sector, offering sophisticated data security and analytics solutions that safeguard sensitive information across both on-premises and cloud infrastructures. With a strong emphasis on machine learning and behavioral analytics, Varonis enables organizations to proactively detect and mitigate potential data risks while ensuring compliance with evolving regulatory requirements. Catering to a wide array of industries, the company has established itself as an essential partner for enterprises navigating the complexities of data protection in an increasingly hostile cyber environment. As demand for comprehensive data security solutions continues to surge, Varonis stands poised for robust growth in a rapidly expanding market.

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