Sonos Inc (SONO)vsZoom Video Communications Inc (ZM)
SONO
Sonos Inc
$14.67
+1.31%
TECHNOLOGY · Cap: $1.77B
ZM
Zoom Video Communications Inc
$95.76
+5.07%
TECHNOLOGY · Cap: $28.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoom Video Communications Inc generates 239% more annual revenue ($4.87B vs $1.44B). ZM leads profitability with a 39.0% profit margin vs -1.2%. ZM earns a higher WallStSmart Score of 70/100 (B-).
SONO
Hold42
out of 100
Grade: D
ZM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.1%
Fair Value
$28.49
Current Price
$14.67
$13.82 discount
Margin of Safety
-8.7%
Fair Value
$84.76
Current Price
$95.76
$11.00 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Keeps 39 of every $100 in revenue as profit
Earnings expanding 91.5% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bull Case : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Bear Case : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
SONO profiles as a turnaround stock while ZM is a mature play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
ZM is growing revenue faster at 5.3% — sustainability is the question.
ZM generates stronger free cash flow (338M), providing more financial flexibility.
Bottom Line
ZM scores higher overall (70/100 vs 42/100), backed by strong 39.0% margins. SONO offers better value entry with a 42.1% margin of safety. 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.
Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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