American Water Works (AWK)vsSonos Inc (SONO)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
SONO
Sonos Inc
$14.76
+5.35%
TECHNOLOGY · Cap: $1.79B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 262% more annual revenue ($5.21B vs $1.44B). AWK leads profitability with a 21.2% profit margin vs -1.2%. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Margin of Safety
+42.0%
Fair Value
$28.47
Current Price
$14.76
$13.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 87.5% YoY
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
AWK profiles as a mature 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.
AWK is growing revenue faster at 5.7% — sustainability is the question.
SONO generates stronger free cash flow (-169M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 42/100), backed by strong 21.2% margins. SONO offers better value entry with a 42.0% margin of safety. 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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