WallStSmart

CDW Corp (CDW)vsSonos Inc (SONO)

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Smart Verdict

WallStSmart Research — data-driven comparison

CDW Corp generates 1477% more annual revenue ($23.50B vs $1.49B). CDW leads profitability with a 4.6% profit margin vs 3.8%. CDW trades at a lower P/E of 19.4x. CDW earns a higher WallStSmart Score of 59/100 (C).

CDW

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.84

SONO

Hold

47

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

CDWUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$141.43

Current Price

$157.00

$15.57 discount

UndervaluedFair: $141.43Overvalued
SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.41

$3.93 premium

UndervaluedFair: $12.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDW1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.7%10/10

Every $100 of equity generates 42 in profit

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

CDW4 concerns · Avg: 3.8/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

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

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : CDW

The strongest argument for CDW centers on Return on Equity. PEG of 1.34 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 : CDW

The primary concerns for CDW are Price/Book, EPS Growth, Altman Z-Score. Debt-to-equity of 2.76 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

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.

CDW is growing revenue faster at 10.0% — sustainability is the question.

CDW generates stronger free cash flow (372M), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CDW scores higher overall (59/100 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.

CDW Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.

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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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