WallStSmart

Arrow Electronics Inc (ARW)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arrow Electronics Inc generates 2045% more annual revenue ($30.85B vs $1.44B). ARW leads profitability with a 1.9% profit margin vs -1.2%. ARW earns a higher WallStSmart Score of 69/100 (B-).

ARW

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 4.5Value: 8.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.94

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARWUndervalued (+67.9%)

Margin of Safety

+67.9%

Fair Value

$491.31

Current Price

$187.83

$303.48 discount

UndervaluedFair: $491.31Overvalued
SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.49

Current Price

$14.67

$13.82 discount

UndervaluedFair: $28.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARW5 strengths · Avg: 8.8/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
100.5%10/10

Earnings expanding 100.5% YoY

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

SONO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Areas to Watch

ARW4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : ARW

The strongest argument for ARW centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 20.1% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : ARW

The primary concerns for ARW are Altman Z-Score, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

ARW profiles as a growth stock while SONO is a turnaround play — different risk/reward profiles.

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

ARW is growing revenue faster at 20.1% — sustainability is the question.

ARW generates stronger free cash flow (173M), providing more financial flexibility.

Bottom Line

ARW scores higher overall (69/100 vs 42/100) and 20.1% revenue growth. SONO offers better value entry with a 42.1% margin of safety. Both earn "Strong 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.

Arrow Electronics Inc

TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Centennial, Colorado.

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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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