Sonos Inc (SONO)vsZscaler Inc (ZS)
SONO
Sonos Inc
$16.41
+0.49%
TECHNOLOGY · Cap: $2.07B
ZS
Zscaler Inc
$197.66
-3.05%
TECHNOLOGY · Cap: $40.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Zscaler Inc generates 125% more annual revenue ($3.35B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs -1.9%. SONO earns a higher WallStSmart Score of 47/100 (D+).
SONO
Hold47
out of 100
Grade: D+
ZS
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$16.41
$3.93 premium
Margin of Safety
+44.6%
Fair Value
$308.72
Current Price
$197.66
$111.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Revenue surging 24.9% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Trading at 12.4x book value
0.0% earnings growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bull Case : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 24.9% demonstrates continued momentum.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Bear Case : ZS
The primary concerns for ZS are Price/Book, EPS Growth, Piotroski F-Score.
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 1.88 — expect wider price swings.
ZS is growing revenue faster at 24.9% — sustainability is the question.
ZS generates stronger free cash flow (64M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (47/100 vs 32/100). ZS offers better value entry with a 44.6% 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.
Compare with Other CONSUMER ELECTRONICS Stocks
Want to dig deeper into these stocks?