WallStSmart

Applied Digital Corporation (APLD)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 144% more annual revenue ($1.49B vs $611.31M). SONO leads profitability with a 3.8% profit margin vs -39.9%. SONO earns a higher WallStSmart Score of 48/100 (D+).

APLD

Hold

38

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 3.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.70

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APLDSignificantly Overvalued (-48.5%)

Margin of Safety

-48.5%

Fair Value

$18.28

Current Price

$24.58

$6.30 premium

UndervaluedFair: $18.28Overvalued
SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APLD1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
406.6%10/10

Revenue surging 406.6% year-over-year

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

APLD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-11.8%2/10

ROE of -11.8% — below average capital efficiency

Free Cash FlowQuality
$-1.16B2/10

Negative free cash flow — burning cash

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : APLD

The strongest argument for APLD centers on Revenue Growth. Revenue growth of 406.6% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : APLD

The primary concerns for APLD are PEG Ratio, EPS Growth, Return on Equity. Debt-to-equity of 2.86 is elevated, increasing financial risk.

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

APLD profiles as a hypergrowth stock while SONO is a value play — different risk/reward profiles.

APLD carries more volatility with a beta of 5.73 — expect wider price swings.

APLD is growing revenue faster at 406.6% — sustainability is the question.

SONO generates stronger free cash flow (40M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (48/100 vs 38/100). Both earn "Hold" 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.

Applied Digital Corporation

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Applied Blockchain, Inc. is engaged in crypto mining and co-hosting operations. The company is headquartered in Dallas, Texas.

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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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