Alarm.com Holdings Inc (ALRM)vsSonos Inc (SONO)
ALRM
Alarm.com Holdings Inc
$65.03
-2.98%
TECHNOLOGY · Cap: $3.27B
SONO
Sonos Inc
$16.41
+0.49%
TECHNOLOGY · Cap: $2.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 40% more annual revenue ($1.49B vs $1.06B). ALRM leads profitability with a 11.1% profit margin vs 3.8%. ALRM trades at a lower P/E of 29.4x. ALRM earns a higher WallStSmart Score of 54/100 (C-).
ALRM
Buy54
out of 100
Grade: C-
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.2%
Fair Value
$68.47
Current Price
$65.03
$3.44 discount
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$16.41
$3.93 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Grey zone — moderate risk
Earnings declined 23.4%
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALRM
PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : ALRM
The primary concerns for ALRM are P/E Ratio, Altman Z-Score, EPS Growth.
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.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
ALRM is growing revenue faster at 9.2% — sustainability is the question.
ALRM generates stronger free cash flow (87M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ALRM scores higher overall (54/100 vs 47/100). Both earn "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.
Alarm.com Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Alarm.com Holdings, Inc. offers cloud-based solutions for smart residential and commercial properties in the United States and internationally. The company is headquartered in Tysons, Virginia.
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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