Allegro Microsystems Inc (ALGM)vsSonos Inc (SONO)
ALGM
Allegro Microsystems Inc
$34.10
+2.99%
TECHNOLOGY · Cap: $6.80B
SONO
Sonos Inc
$15.53
-3.36%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 58% more annual revenue ($1.49B vs $945.93M). SONO leads profitability with a 3.8% profit margin vs 1.5%. SONO trades at a lower P/E of 32.3x. SONO earns a higher WallStSmart Score of 48/100 (D+).
ALGM
Avoid33
out of 100
Grade: F
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.8%
Fair Value
$26.28
Current Price
$34.10
$7.82 premium
Margin of Safety
-32.1%
Fair Value
$12.49
Current Price
$15.53
$3.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 27.5% year-over-year
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
1.5% margin — thin
Premium valuation, high expectations priced in
ROE of -1.6% — below average capital efficiency
Earnings declined 48.5%
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGM
The strongest argument for ALGM centers on Debt/Equity, Revenue Growth. Revenue growth of 27.5% demonstrates continued momentum.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : ALGM
The primary concerns for ALGM are Profit Margin, P/E Ratio, Return on Equity. A P/E of 521.0x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.
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.
Key Dynamics to Monitor
ALGM profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
ALGM is growing revenue faster at 27.5% — sustainability is the question.
SONO generates stronger free cash flow (40M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (48/100 vs 33/100). 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.
Allegro Microsystems Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Allegro MicroSystems, Inc. designs, develops, manufactures and markets sensor integrated circuits (ICs) and analog power ICs for specific applications for motion control and energy efficient systems. The company is headquartered in Manchester, New Hampshire.
Visit Website →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.
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