WallStSmart

Sonos Inc (SONO)vsWix.Com Ltd (WIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wix.Com Ltd generates 38% more annual revenue ($2.06B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs -2.0%. WIX earns a higher WallStSmart Score of 51/100 (C-).

SONO

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

WIX

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 2.0Value: 8.3Quality: 6.0
Piotroski: 4/9Altman Z: 0.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$12.55

Current Price

$15.64

$3.09 premium

UndervaluedFair: $12.55Overvalued
WIXUndervalued (+79.4%)

Margin of Safety

+79.4%

Fair Value

$350.53

Current Price

$60.20

$290.33 discount

UndervaluedFair: $350.53Overvalued

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

WIX3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Debt/EquityHealth
-15.4910/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
47.8%8/10

Earnings expanding 47.8% YoY

Areas to Watch

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.73B3/10

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

WIX4 concerns · Avg: 1.5/10
Return on EquityProfitability
-754.0%2/10

ROE of -754.0% — below average capital efficiency

Altman Z-ScoreHealth
0.412/10

Distress zone — elevated risk

Profit MarginProfitability
-2.0%1/10

Currently unprofitable

Operating MarginProfitability
-12.9%1/10

Operating margin of -12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

Bull Case : WIX

The strongest argument for WIX centers on PEG Ratio, Debt/Equity, EPS Growth. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.13 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 : WIX

The primary concerns for WIX are Return on Equity, Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

SONO profiles as a value stock while WIX is a turnaround play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.96 — expect wider price swings.

WIX is growing revenue faster at 14.3% — sustainability is the question.

WIX generates stronger free cash flow (75M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (51/100 vs 51/100). WIX offers better value entry with a 79.4% margin of safety. Both earn "Buy" and "Buy" 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.

Wix.Com Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Wix.com Ltd, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company is headquartered in Tel Aviv, Israel.

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