Sonos Inc (SONO)vsZscaler Inc (ZS)
SONO
Sonos Inc
$15.06
+1.14%
TECHNOLOGY · Cap: $1.77B
ZS
Zscaler Inc
$152.13
-0.43%
TECHNOLOGY · Cap: $24.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Zscaler Inc generates 106% more annual revenue ($3.00B vs $1.46B). SONO leads profitability with a 1.6% profit margin vs -2.3%. SONO earns a higher WallStSmart Score of 45/100 (D+).
SONO
Hold45
out of 100
Grade: D+
ZS
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.7%
Fair Value
$29.31
Current Price
$15.06
$14.25 discount
Margin of Safety
+47.3%
Fair Value
$324.31
Current Price
$152.13
$172.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Revenue surging 25.9% year-over-year
Areas to Watch
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 11.1x book value
0.0% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bull Case : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 25.9% demonstrates continued momentum.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Bear Case : ZS
The primary concerns for ZS are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
SONO profiles as a value stock while ZS is a growth play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
ZS is growing revenue faster at 25.9% — sustainability is the question.
ZS generates stronger free cash flow (169M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (45/100 vs 34/100). ZS offers better value entry with a 47.3% 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.
Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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